IPMI Inflation in Thailand
This year's IPMI inflation rate of 8.8% is tied with the Philippines for the lowest overall inflation rate in our survey this year, and at least in recent years, appears to be the opposite of the Consumer Price inflation seen in the country, which was 1.96% in 2015. For all that is worth though, the bottom line is that IPMI customers in Thailand are paying more this year. This tells us that IPMI premiums in Thailand are not generally influenced by the Consumer Price inflation, but by global IPMI trends. The main reason we are seeing a trend closer to the global IPMI inflation trend is that insurers have grouped Thailand together with other countries and applied the same premium increase to the group.
For 2016, Pacific Prime predicts for the increasing in IPMI inflation will continue and could actually be even higher next year.