Health insurance has been a persistent issue due to high claims and rising premiums, which led to the introduction of Copayment last year. Previously, several insurers had to pause or adjust child health insurance coverage conditions. Recently, Tokio Marine Life Insurance (Thailand) Public Company Limited plans to resume selling child health insurance in Q2 2026 after revising its business plan, including capital increase and investment portfolio adjustments to enhance returns.
Takashi Saito, Managing Director of Tokio Marine Life Insurance (Thailand) Public Company Limited, He explained that Thailand adopted Copayment due to rising medical inflation experienced globally, with annual increases averaging 10%. Addressing this issue requires cooperation beyond just the insurance sector. Singapore implemented Copayment before Thailand and has already seen medical costs stabilize. Therefore, using Copayment or Deductible could help slow the rise in medical expenses.
The company adjusted its health insurance portfolio, where child health insurance previously accounted for 50-60% (around 500 million baht in first-year premiums). However, due to very high claims in 2021-2022, child health insurance sales were temporarily suspended in 2023-2024, reducing its portfolio share to just over 10%, which is a risk level the company can manage.
Dr. Somphot Kiattikraiwan, Senior Advisor to the Managing Director and Head of Agency at Tokio Marine Life Insurance (Thailand) Public Company Limited, He added that previously, even minor illnesses often led to hospital admissions, with costs averaging over 20,000 baht per night, which is very high. The company incurred losses of several billion baht from child health insurance. Therefore, when relaunching child health insurance in Q2 2026, the company will introduce higher Deductibles to reduce premiums. This encourages customers to assess the necessity of treatment, while the company will continuously monitor underwriting conditions.
Overall, in 2026, the company will offer various insurance products including child and adult health insurance, unit-linked life insurance, and critical illness insurance with diverse coverage, including protection for the elderly.
For 2026, the company targets first-year premiums of 1.1 billion baht through agency channels, with total renewal premiums of 6.503 billion baht, totaling 7.603 billion baht in gross premiums. The goal is also to increase the number of agents to 8,000.
A key part of the 2026 business plan is a significant capital increase of 3.3 billion baht, the largest since the company's founding, raising registered capital to 5.582 billion baht after completion on 2 Dec 2025. This capital raise is expected to benefit the company in three main areas.
1. Preparing for business expansion and managing new risks.
2. Strengthening financial position amid historically low interest rates.
3. Demonstrating commitment to long-term business operations in Thailand.
Additionally, in 2026 the company will revise its investment strategy by reducing government bonds from 85% to 70%, increasing equity investments from 2% to 7% (including more international investments), and raising private debentures from 5% to 15%.
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