The price war in electric vehicles has left many EV owners suffering from declining car values, while also worrying about how much their insurance coverage will decrease next year or whether insurers will continue coverage. These concerns have become challenges that the insurance industry must adapt to and resolve simultaneously.
Dr. Apisit Anantanattharat, Director and Chief Executive Officer of BKI Holdings Public Company Limited (BKIH) and Bangkok Insurance Public Company Limited (BKI), stated that the electric vehicle (EV) market is expected to see both competition and sales growth slow compared to the previous year. This is partly because stimulus measures like the EV 3.0 subsidy ended late last year. Although the EV 3.5 program exists, the slowing economy may make auto loan approvals more difficult.
The company’s EV insurance portfolio for 2026 will continue to grow cautiously and stringently. With a claims ratio at 70%, this portfolio has yet to generate a positive bottom line (it is not profitable) due to high repair costs, such as replacing parts rather than repairing damages, which increases claims expenses. However, the company cannot resist the EV trend and thus continues to offer coverage, though marketing efforts are limited.
In 2026, the company expects EV insurance premiums to reach 400-500 million baht, accounting for 2% of its overall auto insurance portfolio. This represents growth from approximately 380 million baht in 2025, with about 12,000 insured EVs out of a total registered EV market in Thailand of 123,000 vehicles.
For the overall business in 2026, the company has revised its growth target down from a challenging nearly 8% to 4%, or total gross premiums of 32.6 billion baht. This adjustment reflects various risks including a potentially slowing economy due to prolonged conflicts lasting 3 to 6 months, which could impact the economy through rising energy prices and higher inflation—a highly likely scenario.
As a result, the previously forecasted Thai GDP growth of 2.0% may be reduced by 0.1-0.3% due to the conflict, requiring the insurance sector, which typically grows alongside the economy, to adapt accordingly.
Moreover, overall risk exposure in Thailand has increased, leading to higher reinsurance premiums. The company must continue purchasing reinsurance. Last year, claims included approximately 4,800-4,900 earthquake damage cases and severe flood damages, with property insurance losses totaling 1.8 billion baht and auto insurance claims of 550 million baht.
Consequently, the company is shifting its business strategy away from volume-driven auto insurance growth, focusing instead on consistent profit growth to maintain a balanced loss ratio currently above 60%. While the renewal rate was 80% in 2025, it may decline in 2026 due to the slowing economy and increased customer sensitivity to premium prices. The company emphasizes quality over price competition, offering insurance products such as types 2+ and 3+ to meet customer needs.
However, in 2026, the company plans to expand lifestyle-related insurance products, including international travel insurance, diving insurance (within Thailand), critical illness coverage (covering 11 major diseases plus diabetes), a special type 3+ auto insurance product covering floods and vehicle interior theft, and various forms of microinsurance.
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