Health insurance has been an ongoing issue, with high claim payouts and rising premiums leading to the introduction of copayment last year. Prior to that, many insurers had to pause or revise child health insurance coverage conditions. Recently, Tokio Marine Life Insurance (Thailand) Public Company Limited plans to resume selling child health insurance in the second quarter of 2026 after revising its business plan, including a capital increase and investment portfolio adjustments to enhance returns.
Takashi Saito, Managing Director of Tokio Marine Life Insurance (Thailand) Public Company Limited. He recounted that the reason Thailand adopted copayment (shared cost) is that many countries worldwide face rising medical inflation averaging 10% annually. Addressing this issue requires collaboration beyond just the insurance sector. Singapore, as a case study, implemented copayment earlier than Thailand and has begun to see stabilization in medical costs. Therefore, using copayment or deductible mechanisms likely helps slow the increase in medical expenses.
The company adjusted its health insurance portfolio, previously with child health insurance comprising 50-60% of the portfolio (about 500 million baht in first-year premiums). However, due to very high claims in 2021-2022, the company temporarily paused child health insurance sales during 2023-2024, reducing the proportion to around the low 10% range of the total portfolio, which is a level the company considers manageable risk.
Dr. Somphot Kiatriraval, 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 average costs exceeding 20,000 baht per night, which is quite high. The company experienced losses in the billions from child health insurance. Thus, when resuming sales in Q2 2026, the policy will include increased Deductible conditions to lower premiums and encourage customers to assess the necessity of treatments. The company will also continuously evaluate the underwriting situation.
Overall, in 2026, the company plans to offer diverse insurance products, including child and adult health insurance, unit-linked life insurance, and critical illness coverage with varied protections, including for the elderly.
For 2026, the company targets first-year premiums of 1.1 billion baht through agency channels, with renewals of 6.503 billion baht, totaling 7.603 billion baht in premiums. It aims to increase its agent count to 8,000.
A significant part of the 2026 business plan is a 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 boost is expected to support three main objectives.
1. Prepare for business expansion and absorb new risks.
2. Strengthen financial standing amid historically low interest rates.
3. Demonstrate a commitment to long-term business operations in Thailand.
Additionally, in 2026, the company adjusted its investment strategy by reducing government bonds from 85% to 70%, increasing equity investments from 2% to 7% (including expanding foreign investments), and raising private bond holdings from 5% to 15%.
Read personal finance and financial planning news with Thairath Money to help you "Achieve Financial Wellness and a Better Life."https://www.thairath.co.th/money/personal_finance
Follow the Facebook page: Thairath Money at this link.https://www.facebook.com/ThairathMoney