Krungthai Axa Life ramping up overseas exposure

Life companies such as FWD and Prudential are ramping up efforts in Thailand to sell more unit-linked products and thereby reduce their investment risk. They face familiar challenges.

The country’s insurers are awaiting final new risk-based capital rules before making big portfolio changes. They are concerned about potentially high charges for equities.

Bangkok-based life insurance firms are lobbying to be allowed to invest in new asset classes, such as foreign infrastructure and private debt, to help boost returns.

The fast-growing insurer is building its investment team and has taken portfolio management in-house for now. But it may use external firms to enter new asset types.