Premium performance
Despite headline inflation of 5.7 per cent in the first quarter plus high interest rates, Muang Thai Life Assurance managed to obtain Bt684 million in first-year premiums, an increase of 43 per cent.
Thai Life Assurance Association data show the total industry posted zero growth in terms of first-year premiums in February and minus 3 per cent in January.As of the end of last month, Muang Thai Life received total premiums of Bt2.1 billion, up 18 per cent on year. Company president Sara Lamsam said the strong growth was generated from effective distribution channels, including the bancassurance channel, which recorded first-quarter growth of 163 per cent. "Talking about interest rates, of course the banks' interest-rate offer is far better. However, bank products don't come with protection. Also, life insurance is a long-term business. The high short-term interest rate may seem attractive, but when compared with the long-term interest rate that insurance promises, it's similar," said Sara. The insurer has teamed up with Kasikornbank to expand its business by selling through that bank's branches. Apart from the regular products Kasikornbank sells, the investment product Universal Life, which was launched in February, enjoyed brisk sales. Piyarat Setthasiriphaiboon
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