Energy prices pose a critical risk
The Middle East war could lead to slower premium growth, higher claims costs, and rising reinsurance expenses as global reinsurers adopt stricter underwriting standards, says the OIC.
The Middle East war has dampened prospects for Thai insurance premium growth this year as energy prices skyrocket along with reinsurance expenses and financial market volatility, warns the regulator.Chuchatr Pramoolpol, secretary-general of the Office of the Insurance Commission (OIC), said the conflict poses a significant risk to the global economy through rising oil prices, supply chain disruptions, inflationary pressures, and volatility across global financial and capital markets.
The impact could spill over to Thailand's insurance sector through slower premium growth, higher claims costs, and rising reinsurance expenses as global reinsurers adopt stricter underwriting standards.
"The conflict in the Middle East could increase operating costs, repair expenses, medical costs and insurance claims, while global reinsurance markets are becoming more selective in accepting risks," Mr Chuchatr said.
