Recently, questions arose about whether lump-sum health insurance plans would disappear because major life insurance companies had ceased selling them. However, AIA Thailand clarified that lump-sum insurance is not gone but requires "reform" for the sustainability of the entire system.
Chalida Nakornchai, Chief Marketing Officer of AIA Thailand, explained that although the company is discontinuing the popular Health Happy product, this does not mean the end of lump-sum insurance.
"We intend to discontinue Health Happy, which is a lump-sum insurance plan, but we will introduce a new product to replace it. The new plan will likely include conditions that encourage customers to modify their behavior," Chalida said.
With Health Happy ending sales on 31 Mar 2026, a replacement product will be launched immediately, incorporating new conditions such as Copay options for customers, with varying levels based on coverage limits.
Introducing Copay from the first baht makes premiums cheaper than the previous lump-sum plans, offering customers more choices. On 23 Jan 2026, AIA will launch a pilot Copay health insurance called Health Starter. Its features resemble the former H&S Extra product but include Copay. Initially, it offers:
The Begin plan (economical premium) Customers using hospitals in the AIA Smart Network pay a 10% Copay; those using out-of-network hospitals must pay 30% Copay.
The Balance plan (higher premium) Customers using hospitals in the AIA Smart Network pay no Copay; out-of-network usage requires a 20% Copay.
This represents a health insurance plan with Copay from the first baht, differing from the 2024 announcement by the Office of Insurance Commission (OIC), which mandates Copay starting from the policy renewal year if claims exceed certain conditions.Read more here)
"This year, we will implement considerable changes. When the new product replaces Health Happy, we will also discontinue products that are borderline," Chalida said.
Chalida explained that with lump-sum insurance, some medical treatments were not standardized. Combined with rising medical inflation, lump-sum plans without Copay are like an all-you-can-eat buffet where leftover waste leads to continuous price increases, eventually limiting access for some customers.
"Introducing Copay is like paying extra for leftovers, which encourages customers and hospitals to adhere more closely to medical standards. This will help sustain the overall health insurance market," Chalida said.
However, lump-sum health insurance plans without Copay from the first baht still exist, such as AIA Infinite Care (for High Net Worth clients with a 120 million baht plan). Each segment offers different plans, and a variety of products will follow.
This year, AIA Thailand is adjusting several insurance plans and recently launched AIA ELITE INCOME PRESTIGE (UNIT LINKED). This product targets High Net Worth clients, who desire annual returns or have large sums of money but are not ready to fully transfer wealth to heirs. With current declining interest rates, this insurance appeals even more.
This insurance combines life coverage with investment (Unit Linked) and is the company's first not to charge a Premium Charge* (although early withdrawal before 10 years may incur fees). It requires a 5-year premium payment and covers up to age 99, with premiums starting at 500,000 baht. It suits those planning future estate transfers.
"Out with the old, in with the new" might summarize the insurance market in 2026. As costs rise, insurers must adapt, but whether the new products are "worth it" for customers or companies remains to be seen. Consumers need to continue monitoring and selecting the best options for themselves.
*Premium Charge refers to the operational costs for processing the main insurance premium.
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