Sales of new cars in the first four months of this year dropped 16 per cent but the auto-insurance industry is forecast to grow 7-9 per cent.

President and chief executive John Fu, appointed in February, said that LMG could achieve double the industry's growth rate this year. Last year it received Bt2.67 billion in premiums.

He added that its investment in technology would decrease leakage and cut unnecessary costs.

"After the full implementation of the technological system, we'll be able to provide much faster service to our customers," he said.

 "Our goal is to become the market leader. In terms of size, it's impossible to do so in the short term. But in terms of customer service, we're confident that we can soon be the market leader."

Fu expected combined costs - claims, commissions and internal expenses - would be lowered from 100 per cent of premiums this year.

Normally, insurers generate profit from operations and investment. Although the operational costs take up all the revenue, LMG will continue to conservatively invest in bonds or fixed-income tools.

"We are very conservative and won't invest in equities. Apart from seeking efficiency and decreasing leakage, we would like to expand in every distribution channel possible. We are open to acquiring an insurer. However, so far we don't have such a plan in place," said Fu.

LMG is Thailand's sixth-largest motor insurer. The Boston-based insurer and member of Liberty Mutual Group entered the Thai market five years ago by acquiring a stake in Narai International Insurance, then a top-10 insurer.

Piyarat Setthasiriphaiboon

The Nation