Thailand is one of the few markets unaffected by the global recession and domestic sales for passenger cars, pick-ups and LCVs are set to grow by about 10% in 2012. However, the Thai insurance industry has been experiencing rising costs which are being driven up by the size and the quantity of claims relating to accident repair. Thai insurers have seen the success achieved in the UK through Thatcham's work for the ABI and have now asked Thatcham to do the same for them.
SBD's latest report ‘Thailand - Car Theft and Insurance’ is a comprehensive guide to the market situation in Thailand. The report analyses the status of vehicle theft, new car sales, insurance claims, and the different elements of the group rating process and parts accreditation scheme that Thatcham are going to introduce for the Thai insurance industry.
Thai insurers are expected to start using the new rating system to calculate insurance premiums from early 2012 - so this report can give you an ideal head start.
SBD has been monitoring the situation in Thailand since Thatcham opened their office there in 2007. The country does not have a significant problem with vehicle theft like some of its neighbours - the theft rate in Malaysia for example exceeds that in the majority of European countries. However, rising insurance costs have led Thai insurers to discuss possible solutions with Thatcham. This rise in insurance costs can be attributed to a number of factors including:
Timing of Insurance Rating Process Introduction in Thailand
The GIA (General Insurance Association) and Thatcham Thailand have been working together since March 2011 to develop a new insurance rating process for the Thai insurance industry and an alternative parts accreditation scheme for the Thai market. The Thai repair industry is currently using about 70% non-genuine parts and the insurers want to improve the quality of these parts available. The main purpose is to improve safety but the insurers also believe that it will force vehicle manufacturers to price OE replacement parts more competitively, hopefully reducing repair costs for the insurance industry in the process. Thatcham believes that introducing a parts accreditation process in Thailand should also be in the interest of the vehicle manufacturers because it will decrease the repair industry's reliance on non-genuine parts and lead to increased revenue for vehicle manufacturers.
Thatcham have been responsible for administering the UK Group Rating Process for many years and have successfully helped the Swedish Insurance Association TFF, integrate elements of the UK insurance system in Sweden. The Thai insurance industry hopes that Thatcham's experience will help them to quickly reduce their costs.
This report gives a detailed and comprehensive guide to the market situation in Thailand, summarises the status of vehicle theft in the country and analyses the different elements of the group rating and parts accreditation that Thatcham have proposed to the Thai insurers.
Chris Vargyas (Senior Project Manager - Consulting Division).
Chris graduated from the University of Leicester in 2003 with a degree in Mechanical Engineering. He is an expert in vehicle security legislation and insurance requirements. He is responsible for managing projects for a number of our major clients on their insurance approval processes and assuring the security performance for various vehicle ranges and individual security components.
Sam Nelstrop (Project Manager - Consulting Division).
Sam joined SBD from Denso, one of Japan's largest domestic suppliers where he was a technical liaison engineer between the designers based in Europe, and the Technical Centre in Japan. He is fluent in spoken Japanese and is located in our Nagoya office where he manages some of SBD's key accounts providing technical support on all aspects for vehicle security system development. Sam has a Masters Degree in Advanced Technology Management and is an expert in new product introduction.
** Due to the confidential nature of the report content, your request to purchase SBD's security reports will be vetted by SBD's security team, prior to any sale agreement. **