...Bancassurance Continues to Drive Premium Growth Bancassurance has been the key contributor to the growth of Thai life insurance in the last few years. Premiums written through bancassurance in 2013 were almost double those in 2010. Life insurers with an exclusive partnership with the top four major local banks are the main beneficiaries due to the banks' extensive branch networks, while other life insurers are seeking strategic relationship with banks. Fitch Ratings expects steady growth to continue in the medium term ¡ supported by low penetration, an ageing population, and tax-reduction benefits. Agency Distribution Remains Important Most major life insurers are likely to boost their agency force capacity and productivity, as products sold through agents are generally traditional insurance products which have a relatively wider margin ¡ whereas bancassurance is associated more with investment products, with thinner margins. Agency and bancassurance are the two main distribution channels,...
