Poramasiri Manolamai, senior vice president and chief marketing officer, said yesterday that the insurer would not use the service of Krung Thai Bank's securities units, KTB Securities and Trinity Securities, to manage its investment portfolio. It believes that it can on its own generate a satisfactory return, compared to its competitors and the market average.

While guaranteeing a minimum return of one per cent, Isara's unique selling point is the flexibility that traditional insurance policies cannot offer.

Customers can select the mix of life protection and savings that matches their current needs. The proportion is changeable, in line with the insured's life stage and financial situation. Customers can choose the protection period, adjust the premium payment and vary coverage.

In late 2005, the country's largest life insurer, American International Assurance (Thailand), launched the nation's inaugural universal life product. Muang Thai Life, the country's fifth-largest life insurer, followed with its product in February last year.

KT-Axa expects 60 per cent of its universal life premiums this year will come from its bancassurance channel, Krung Thai Bank. KT-Axa, the country's ninth largest among 24 life insurers, is expanding its business through bancassurance with the help of its parent.

CEO Mike Plaxton said his firm and the bank had prepared the system and training for bancassurance over the past two years. Last year, its agents contributed 75 per cent of total premiums of Bt3.61 billion. Business was up 70 per cent year on year in the first quarter to Bt1.15 billion of premiums, according to Thai Life Assurance Association data. - Piyarat Setthasiriphaiboon The Nation