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Published on October 31, 2007

Vichai Maneekerd died of gunshot wounds to the head, leaving behind a wife and three children, two of them still in school. But thanks to a Krungthai AXA Bt400,000 insurance policy he bought a few months earlier, his children were able to further their education.

The video's success at plucking viewers' heartstrings rests upon three factors that Krungthai AXA Life Insurance outlines as its new points of focus.

The video highlights how Thais prize education. His widow, Kasemsri, says that her initial concern was her children's future, meaning their education.

It is common for families to lower their living standards to meet education expenses, said CEO Michael Plaxton.

And relying on family rather than individual income, Thais, like other Asians, are financially vulnerable if the breadwinner dies.

Plaxton said Krungthai AXA's new products would address these needs and concerns.

Despite a comparatively high savings rate among Thais, only 67 per cent of middle- to high-income earners plan seriously for their retirement. On average, Thais start preparing for their retirement at age 44 while hoping to retire at 58, Plaxton said.

Krungthai AXA's figures on retirement preparedness corroborate those of American International Assurance, which earlier found that 57 per cent of Thais believed they did not have enough for retirement.

Future competition for retirement products will focus on a hybrid of maturity sum and monthly annuity, Plaxton said. Such products are already being offered by giants like Ayudhya Allianz CP and ING Life.

With the large majority of its clients in the low- to middle-income segments, Krungthai AXA has made headway into

the middle- and high-income markets with increased

bancassurance sales through Krungthai Bank and direct marketing through Kiatnakin Bank's Assets Management Department.

Chief marketing officer Saifon Sutchasila said the company netted Bt1.88 billion in new premiums - with Bt535 million from bancassurance - in the past nine months. It is therefore poised to achieve this year's targets of Bt2.3 billion and Bt600 million, respectively.

Every once in a while, insurance companies commission studies on people's attitudes towards savings, health, retirement and, of course, insurance, with the hope of reminding mortals of their fragile grasp on life. Plaxton hopes his company's findings will raise public awareness on matters of insurance.

Ki Nan Tsui The Nation