Insurance industry underpins Thailand’s resilience

Sector ‘key to long-term economic growth’

As Thailand navigates an increasingly uncertain future shaped by climate change, technological disruption and geopolitical tensions, the insurance industry will play an even greater role in strengthening economic resilience, protecting investment and supporting sustainable growth, says Amorn Thongthew, managing director of Viriyah Insurance.

Having grown alongside Thailand for nearly eight decades, Viriyah Insurance has witnessed first-hand the country’s transformation from an emerging economy into one of Southeast Asia’s leading industrial and service hubs. According to Mr Amorn, the company’s own development has closely mirrored Thailand’s economic progress.

“When the economy grows, people’s lives change. Businesses expand, incomes rise and assets increase. At every stage of development, the need for protection also grows,” he said.

Thailand’s rapid economic expansion during the late 1980s and early 1990s marked a defining period for both the country and the insurance industry. As Thailand emerged as a major automotive manufacturing base, vehicle ownership expanded rapidly, driving strong demand for both compulsory and voluntary motor insurance. Viriyah established itself as the country’s leading motor insurer during that period and has maintained the position ever since.

Mr Amorn believes, however, that the industry’s contribution extends far beyond underwriting policies.

“Insurance is one of the foundations of economic resilience,” he said. “It enables households, businesses and communities to recover from unexpected losses and continue moving forward.”

At the household level, insurance provides financial support when families face illness, accidents, natural disasters or property damage, helping restore livelihoods and reducing financial hardship. During the Covid-19 pandemic, insurers played an important role in compensating policyholders and supporting families through one of the country’s most difficult periods.

Its broader economic role becomes even more evident during national crises.

Mr Amorn pointed to the devastating floods of 2011, which affected more than 5.2 million households, disrupted over 800 factories and industrial estates, and caused economic losses estimated at more than 240 billion baht. Insurance compensation enabled businesses to rebuild, factories to resume operations and communities to recover more quickly, helping restore investor confidence and minimise long-term disruption to the economy.

“The insurance industry provides confidence that recovery is possible,” he said. “Without effective risk protection, rebuilding after major disasters would be far more difficult.”

Looking ahead, Mr Amorn believes Thailand faces a far more complex environment than in previous decades. Climate change is increasing the frequency and severity of natural disasters, while global competition for increasingly scarce resources is contributing to geopolitical tensions and economic uncertainty.

Thailand cannot avoid these global challenges, he said, pointing to recent energy market volatility as an example of how international events directly affect the country’s economy and people’s quality of life.

Yet he also believes Thailand possesses significant strengths that can support future growth.

The country’s strong agricultural base provides food security, while its diversified industrial infrastructure continues to attract manufacturing and technology investment. Thailand’s reputation as a neutral and stable country also offers an important competitive advantage as companies seek reliable investment destinations amid growing geopolitical uncertainty.

“Thailand has many strengths that can position the country well for the future,” he said. “The challenge is ensuring we are prepared for an increasingly unpredictable world.”

As businesses undergo rapid digital transformation, artificial intelligence is expected to reshape every industry. Mr Amorn believes Thailand has adapted well to digital technology, citing the country’s high smartphone penetration and one of the world’s highest rates of mobile banking adoption.

The next challenge, however, is not simply adopting AI but developing people capable of using it effectively, ethically and securely.

“Technology itself is not the difficult part,” he said. “The real challenge is developing people who understand how to apply AI responsibly while maximising its benefits.

At the same time, he warned that cybersecurity will become an increasingly important national priority as cybercrime grows more sophisticated. Online fraud continues to cause substantial financial losses each year, highlighting the need for stronger cyber resilience among both businesses and individuals.

The insurance industry has responded by developing cyber insurance solutions that help organisations and households manage emerging digital risks, reflecting the sector’s evolving role in protecting against new forms of uncertainty.

For Thailand to remain competitive over the coming decades, Mr Amorn believes investment in people will be just as important as investment in technology.

Technical expertise must be complemented by communication skills, collaboration, critical thinking and lifelong learning. Young people should be encouraged to question, analyse and continuously develop their knowledge while remaining adaptable in an increasingly fast-changing world.

Viriyah Insurance has sought to contribute by providing practical learning opportunities for young people interested in the insurance profession, enabling experienced staff to pass on knowledge while encouraging the exchange of ideas across generations.

Looking ahead over the next 10 to 20 years, Mr Amorn believes Thailand’s future prosperity will depend on balanced and sustainable development. Agriculture, manufacturing, exports, tourism, services and technology should all serve as complementary engines of growth, supported by long-term strategic planning while remaining flexible enough to respond to unexpected crises.

Equally important, he said, is ensuring that economic development goes hand in hand with environmental stewardship, the transition towards a green economy, investment in education and the preservation of Thailand’s cultural values.

“Technology will continue to change, but sustainable development ultimately depends on people,” he said. “If Thailand can strengthen its human capital while remaining resilient, innovative and true to its values, the country will be well positioned to thrive in the decades ahead.”