June 2016: Asinta’s Partner in Thailand, LawtonAsia, has reported back the following important changes in employee benefits thus far in 2016:
The highly competitive employee benefits market in Thailand continues to suffer from heavy, often unscrupulous discounting of employee benefits packages, which has resulted in employers having a lack of clear understanding regarding the proper pricing of benefits packages for their employees. This discounting, coupled with a shortage of expertise in the insurance sector is leading to a market where price underwriting, rather than service, is becoming the prime factor for decision making by many employers.
Prices are therefore generally lower than 2015, with the expectation that more insurers and intermediaries will be entering the market over the coming years, further intensifying the price competition. It is hoped that with the emergence of new product and service ideas in the years to come, that the established service-orientated benefits providers will continue to have a competitive edge over the lower cost, price-orientated providers.