Actress Chermarn boonyasak poses for a picture during her spa treatment at a press conference hosted by Muang Thai Life Assurance, yesterday. The company was launching its Smile Privilege Campaign, which offers special products and discounts to customers.

Although the growth figure fell short of the firm's target of 49 per cent, it was still miles ahead of the insurance industry's growth rate of only 2 per cent.

The insurer said its policies of multichannel distribution and directing-marketing campaigns aimed at its policyholders' lifestyles helped its premium-renewal rate reach 90 per cent, compared with 76 per cent year on year.

As a result, the company received total premiums of Bt4.73 billion, up 22 per cent year on year.

Muang Thai president Sara Lamsam remains confident his firm will achieve its full-year target of Bt14 billion for total premiums.

"Inflation and oil prices, of course, have affected customers' spending. But slower growth in the first half of a year is normal in this business. The cycle of heavier sales volume usually starts in the second half," he said.

The company's sales through its agent channel grew about 5 per cent, while bancassurance through Kasikornbank branches more than tripled.

Over the next three years, the company plans to generate 30 per cent each of total premiums from agents, bancassurance and affinity channels, with the remaining 10 per cent coming from group insurance. Currently, agents dominate sales, accounting for 69 per cent of volume. Bancassurance accounts for 16 per cent, while group insurance and affinity channels account for 7 per cent and 11 per cent, respectively.

Sara said that following along with the trend towards high interest rates, Muang Thai might consider increasing the interest rate on some policies, in order to attract more customers.

Due to first-half market fluctuations, Muang Thai has also readjusted its investment portfolio, underweighting equity investment from 13 per cent to 12 per cent. Of its total investment of Bt32.02 billion, 70 per cent is in fixed-income investments, 10 per cent for loans and the rest set aside as cash flow.

Meanwhile, the company yesterday launched its "Smile Privilege" campaign.

It is offering its customers three types of privilege cards, in accordance with the amount paid for premiums. Policyholders who pay annual premiums of more than Bt100,000 but less than Bt250,000 are eligible for a Platinum Card. Customers paying annual premiums of more than Bt250,000 qualify for a Prestige Card, and those who pay less than Bt100,000 per year qualify for a Smile Card.

Piyarat Setthasiriphaiboon

The Nation