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Published on November 23, 2007

Despite its best-selling plan for executive drivers, Allianz CP General Insurance found its motor insurance business in upcountry areas grew by 400 per cent this year.

"The loss ratio is also much better upcountry at about 50 per cent, compared to about 70 per cent in Bangkok," said chief executive Prakit Iamopas.

Still, upcountry sales only make up 10 per cent of total premiums, an imbalance that the company would like to redress.

The insurer recently deployed a new publicity tactic - donating a box set of the 80-episode "Kob Nok Kala" to rural schools - associating itself with one of Thai television's most popular non-fiction programmes.

The chief executive advocates strong balance in key areas of the business. He credited the move to the retail market five years ago with helping Thailand's biggest industrial and commercial insurer sustain 15-per-cent growth, as government mega-projects dried up. Industry-wide growth has hopped along at 7 per cent in the past years. Industrial and commercial premiums used to make up about 90 per cent of total premiums, relying on the CP Group, its mother company, for a large chunk of business. Prakit wants to see the current 67 per cent reduced to 50 per cent.

It is all about getting the right marketing mix, said Prakit. AZCP usually picks it battles carefully. For instance, it avoids the city car-market, where it is difficult to emerge victorious.

Another matter of balance is to beef up its direct marketing, especially telesales and affiliates. Patsharee Congtrakultien, AZCP's director, believes that a diversified distribution network, with non-agency channels growing to 25 per cent, is feasible.

AZCP, which expects total premiums of Bt1.8 billion by the end of the year, has a few telesales tricks to learn from Ace Life Assurance, the pioneer in this field. In a short period of six years, the company has amassed 1.1 million policyholders, and 60 per cent of them live in upcountry areas.

Ki Nan Tsui

 The Nation