The Trend of Demand for Voluntary Automobile Insurance Policies in Thailand

Abstract

The purpose of the research was to investigate factors determining the expanding demand for voluntary automobile insurance policies in the Kingdom of Thailand. In addition, the researcher forecasts the expansionary trend for increasing in the quantity of voluntary automobile insurance policies. The data were taken from the period of annual report between 1996 and 2010.

The findings showed that four independent variables: per capita income, indemnity rates, the quantity of newly registered automobiles, and the average premium for voluntary automobile insurance were the factors of changes in the quantity of voluntary automobile insurance policies. In forecasting the trend for the quantity of voluntary automobile insurance purchased in Thailand, the quantity of voluntary automobile insurance policies purchased would exhibit a rate of expansion eventuating in an increase of 297,232 policies a year or at the rate of 5.24 percent per annum.