Medical inflation and inadequate retirement savings are reshaping how insurers design lifetime health protection as Thailand becomes a "super-aged" society, says Muang Thai Life Assurance (MTL).
MTL chief executive Sara Lamsam said Thailand must ensure longer lives are matched by better health and stronger financial security if it is to "successfully navigate an ageing society".
He warned that rising medical inflation and insufficient retirement savings are emerging as two of the country's biggest long-term challenges.
"Thailand's demographic transition requires policymakers, healthcare providers and insurers to focus on three interconnected pillars, which are life span, health span and wealth span," said Mr Sara, noting that while life expectancy continues to rise, health span has not kept pace.
There is an average gap of around 10 years between the time people live and the years they remain healthy, with chronic illnesses and disability typically emerging during that final decade.
Narrowing this gap through preventive healthcare, regular health screening and healthier lifestyles should become a national priority, he said.
MEDICAL INFLATION
Mr Sara said medical inflation is rising around 10% annually, significantly outpacing general inflation as healthcare costs increase alongside advances in medical technology, artificial intelligence (AI)-assisted treatment and new therapies.
This trend has pressured both consumers and insurers, making healthcare more expensive during the final years of life when medical needs are greatest.
To address the challenge, MTL is redesigning insurance products to provide longer-term protection, extending health coverage up to age 95 or even 100 in some markets.
New products are being developed with level premiums, allowing customers who purchase coverage at a younger age to lock in more predictable insurance costs despite rising medical expenses.
The company is also introducing more flexible policies that allow policyholders to use part of their life insurance benefits to cover outpatient and inpatient medical expenses after retirement, while preserving any unused amount as an inheritance.
THE MISSING PILLAR
Beyond healthcare, Mr Sara said Thailand faces an equally serious challenge in wealth span, referring to the period during retirement in which people have sufficient financial resources to maintain their quality of life.
Unlike many developed countries, Thailand has limited state pension support, while many households continue to save inadequately for retirement.
As a result, longer life expectancy risks becoming a financial burden unless people accumulate enough savings or continue generating income later in life.
He said insurers should help foster a stronger savings mindset through retirement and savings-oriented insurance products while encouraging lifelong learning, reskilling and the adoption of AI to enable older workers to remain productive for longer.
MTL is expanding insurance access by offering products for people who have recovered from serious illnesses and allowing retirees to convert employer-sponsored health insurance into individual policies without requiring a new medical examination.
The insurer is also strengthening partnerships with hospitals through initiatives such as MTL Smile Hospital network, aiming to promote preventive care, ensure treatments meet medical necessity standards and build a long-term healthcare system.
The objective is not simply to extend life expectancy, but to ensure that life span, health span and wealth span evolve together, enabling older people to remain healthy, financially secure and independent while preserving their dignity throughout longer lives, said Mr Sara.
