CEO and director Kheedhej Anansiriprapha said due to the heavy price war as companies fought for customers for Class 1 voluntary motor-insurance policies, the company so far this year faced a 20-per-cent decrease in the growth of this portfolio.

The insurer's Class 1 portfolios accounted for about 80 per cent of the company's total motor insurance.

Kheedhej said there were 2.94 million Class 1 policies sold last year, which generated Bt49.6 billion in premiums for the industry.

"The premium is Bt16,870 per policy on average, but the real expenses are above Bt18,000, because there's about a 60-per-cent loss ratio in this category," said Kheedhej.

He said AXA would remain focused on the Class 1 category but also expand to sell more Class 3 policies that would come with special services offered to Class 1 customers.

"AXA 3 Free will offer policyholders three free bonuses, including on-site service, car towing and fuel fill-ups. However, the bonuses will be limited to certain conditions," Kheedhej said.

The premiums start from Bt2,999. Class 3 insurance covers other parties and their property. The compulsory policies cover only third parties.

General Insurance Association data show there were 6.54 million compulsory policies last year, generating Bt5.88 billion in premiums.

Piyarat Setthasiriphaiboon

The Nation