BlueVenture TPA Co.,Ltd. in collaboration with Thai Reinsurance PCL. and Thaire Life Assurance PCL.
Organized a seminar “Health insurance challenges! A Deep Dive into Medical Inflation in Thailand and
Learn How Singapore Tackles Rising Healthcare Costs.”
BlueVenture TPA Co., Ltd. (BVTPA), in collaboration with Thai Reinsurance PCL.(THRE) and Thaire Life Assurance PCL. (THREL), organized a seminar “Health Insurance Challenges: A Deep Dive into Medical Inflation in Thailand and How Singapore Tackles Rising Healthcare Costs.” On November 19th, 2024 at The Renaissance Bangkok Ratchaprasong Hotel.
The event provided valuable insights into the issue of medical inflation in Thailand and for exchanging strategies to address the challenges posed by rising healthcare costs. Industry leaders, including representatives from Singapore Life Holdings (Singlife), shared their expertise in accident and health insurance management, emphasizing sustainable cost-control measures and building a resilient healthcare system.
Health Insurance Trends in Thailand
Ms. Nantinee Chinwanno, Executive Vice President of Thai Reinsurance PCL., provided an overview of health insurance premiums in Thailand, stating, “From 2019 to 2023, health insurance premiums under life insurance showed continuous growth. In the non-life insurance segment, COVID-19 insurance led to a significant surge between 2019 and 2021, followed by a contraction in 2022–2023. Excluding COVID-19-related premiums, the non-life insurance business experienced consistent growth from 2019 to 2022 but saw a slight contraction of 0.4 % in 2023. For the first half of 2024, health insurance premiums under life insurance grew by 11.3%, while non-life insurance premiums declined by 6.3%.”
Rising Medical Inflation in Thailand
Dr. Suthon Chutiniyomkarn, Chief Executive Officer of BlueVenture TPA Co., Ltd. discussed the critical issue of medical inflation, “Rising medical costs are influenced by multiple factors, including the development of new drugs, shortages in medical supplies, advancements in medical technology, and increasing demand for skilled medical personnel,” he explained.
He further shared data revealing an annual increase in inpatient medical treatment costs, with a projected growth rate of 16.2 % in 2024. For example, the average expense for inpatient surgical cases in private hospitals rose from 47,163 Baht in 2021 to 60,921 Baht in 2024.
The table shows the average medical expenses for inpatients undergoing surgery in private hospitals (in Baht per case).
| 2021 | 2022 | 2023 | 2024 | %Growth |
| 47,163 | 50,259 | 52,438 | 60,921 | 16.2% |
Dr. Suthon attributed this to emerging diseases, lifestyle changes, and overutilization of medical resources. BlueVenture TPA estimates that medical inflation in Thailand will reach 11.3 % in 2025, further challenging insurers and healthcare providers.
Singapore’s Approach to Rising Healthcare Costs
Dr. Warren Ong, Head of Health Services at Singapore Life Holdings, said, “In Singapore, health expenses account for 4.47% of the gross domestic product (GDP), with 31.17 % of health costs paid directly by individuals, rather than through insurance or the public health system. This reflects our philosophy of individual responsibility supported by a state-provided safety net,” he remarked.
Dr. Ong acknowledged that despite Singapore’s strong healthcare financing framework, rising costs remain a concern, with 2024 medical expenses projected to increase by 10-13%. Some insurers anticipate premium hikes of up to 25% to sustain their portfolios. He emphasized that the Singapore government recognizes the importance of maintaining a strong public health system and puts great effort into ensuring its sustainability. There is ongoing investment in public infrastructure, along with policy adjustments to better suit primary patient care. Family medicine training has been developed with an emphasis on preventive care and the management of complex conditions. Additionally, alternative care models are being developed to provide treatment options at home while strengthening primary healthcare through enhanced public-private partnerships.
The seminar garnered significant attention from life insurance companies, general insurers, and brokers, offering a valuable platform to gain deeper insights into the latest trends in the health insurance industry. It also facilitated collaboration on strategies to manage the rising medical expenses that affect the entire insurance sector, including its integration with the public healthcare system. Participants examined a case study of Singapore, uncovering innovative approaches that could be applied to create sustainable solutions for Thailand’s insurance industry.
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