The Thailand Office of Insurance Commission said it is closely monitoring the effect of the Middle East conflict on Thailand’s insurance sector and has run internal stress tests and liquidity tests to assess the impact. The results indicate that most life and non-life insurers still hold capital above supervisory requirements and maintain sufficient liquidity, even as the conflict raises risks through higher energy prices, supply chain disruption, global financial market volatility and tighter reinsurance conditions. For 2026, the regulator expects growth in total premiums to slow from earlier projections as economic activity weakens, purchasing power softens and financial markets remain volatile, although health insurance is still expected to expand despite medical cost inflation and higher pharmaceutical costs. As of the fourth quarter of 2025, capital adequacy ratios (CAR) stood at 442.4 percent for life insurers and 367.2 percent for non-life insurers, versus the 140 percent minimum. The stress scenario run from early March covered higher bond yields, falling equity prices, energy-driven increases in claims costs, and the effect on war-risk premiums and the global reinsurance market, while separate short-term and medium-to-long-term liquidity tests found most insurers could meet obligations and manage cash flow. The Thailand Office of Insurance Commission said it will continue to monitor the conflict and wider global economic risks, with particular attention to insurers and product lines that are more sensitive to the outlook, including travel, marine, aviation, energy, property, business interruption and products exposed to financial market conditions.

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