"The company's new service centres will provide greater coverage for customers as well as new alternatives in various non-life insurance services," Yoichi Tamagaki, president of Sri Muang Insurance, said on Friday.

Japan's biggest insurer, Tokyo Marine, holds a 52-per-cent stake in the firm. Most of its customers are Japanese and include companies such as Toyota, Honda, Izusu, Matsushita and Panasonic.

Of the firm's customer portfolio, 80 per cent of its revenue is generated from transactions with Japanese customers, and the remaining 20 per cent from Thai customers.

Tamagaki said that in five years the revenue proportion was expected to be 50-50, and he forecasts a shift to 20-80 within a decade.

Realising that the company's brand is barely known to Thais, it has set also aside an advertising budget of Bt26 million.

To support the plan to penetrate the local market, Sri Muang has set up 12 branches nationwide.

Despite sluggish car sales, Tamagaki believes sales will continue to grow as customers are opting for smaller vehicles.

"Currently, 30 per cent of our portfolio comprises motor insurance. Within five years, we believe that the proportion could change to 50-50," said Tamagaki.

Although the firm received Bt1 billion in premiums during the first half of the year, Tamagaki is confident it will achieve its target of Bt2.6 billion this year.

"The Japanese firms' accounting period is in the second half of every year, so it's not unusual that we generate more premiums during the second half," he said.

Sri Muang is ranked 11th in the local insurance industry in terms of overall premium, but comes in first in marine and transportation insurance.

Piyarat Setthasiriphaiboon

The Nation