The Workplace of Insurance coverage Fee (OIC) has revamped motor insurance coverage rules for the primary time in almost 20 years, with a pilot run to be launched subsequent yr.
The modifications embrace charging premiums primarily based on driving behaviour and historical past. Drivers with a superb document and no claims will obtain a reduction of as much as 40% on motor insurance coverage premiums. Drivers with high-claim historical past must pay a surcharge on motor premiums of as much as 40%.
A pilot undertaking will probably be launched on 1 January 2025 for brand new fossil-fuelled and hybrid vehicles. The brand new rules are to use to all vehicles in 2026. The intention is to advertise secure driving and scale back motor accidents.
Drivers
As well as, OIC stipulates that the driving force’s identify be specified within the insurance coverage coverage to reach on the insurance coverage premium acceptable to the danger of the driving force. The client can specify as much as 5 drivers per coverage.
At present, motor insurance coverage insurance policies don’t require a driver to be named. Nonetheless, clients have an choice to buy a coverage that specifies drivers to acquire a decrease premium. At present, most motor insurance policies specify 1-2 drivers.
Automobile gross sales
The motor insurance coverage market expects the gross sales of latest combustion-engine vehicles to contract considerably subsequent yr as in comparison with 2024. Nonetheless, the gross sales of electrical automobiles have grown because of many manufacturers coming into the market. Subsequently, it’s believed that the general motor insurance coverage premium earnings subsequent yr may seemingly develop by about 3-5% in comparison with this yr.
Giving his views, Bangkok Insurance coverage Public Firm’s CEO and president Dr Apisit Anantanatarat instructed Prachachat that 2025 automobile gross sales would not going enhance due to the economic system and that the GDP wouldn’t develop by greater than this yr’s progress fee. Family debt can be unlikely to lower. The scenario will be assessed from the lending insurance policies of economic corporations and banks geared toward avoiding non-performing loans. Which means the variety of vehicles that will be purchased by leasing or new automobile gross sales is unlikely to enhance a lot, which can subsequently put strain on the expansion of motor insurance coverage premiums.
Certainly, this yr’s new automobile gross sales have been shrinking sharply. The focused gross sales determine has been adjusted downward because the starting of the yr when it was set at 800,000-900,000 vehicles. It was later adjusted all the way down to 750,000 vehicles and once more to 550,000 vehicles.
Dr Apisit believes that the brand new motor insurance coverage guidelines will assist scale back the loss ratio by about 10%. Nonetheless, as labour and spare components prices at sellers’ workshops are very excessive, the loss ratio for brand new vehicles remains to be larger than 65%.
He mentioned that some automobile fashions could see premium hikes subsequent yr, to replicate the danger and the rising prices of repairs and spare components. The premium enhance needs to be round 3-5%, primarily for brand new vehicles repaired at seller garages,” he mentioned.
