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Published on January 14, 2008

Company president Sara Lamsam says its ability to consistently beat the industry's 10-per-cent average growth is due to constant improvements in multichannel marketing and distribution. Last year the company reported 68-per-cent growth in sales of first-time premiums alone, ending the year with Bt5.7 billion, compared to Bt8 billion of continued premiums - in large measure the result of aggressive expansion on the bancassurance front.

With its partnership with Kasi-kornbank, the company would like to increase its average penetration rate of 5 cent of the bank's customer base through the diversification of its product range, said Arjan Wes, director and senior executive vice president.

Wes was plucked from Fortis Insurance, a shareholder of Muang Thai Life Assurance, to boost the bancassurance business.

The product range to be developed and marketed this year will be a new line of lifestyle savings products for the young professional segment, he said. Accommodating changing consumer behaviours, the new products will have shorter contract terms, allowing more flexibility. Since its launch the company has found success with its retirement insurance plans in the high net-worth segment.

Wes credited the bank's information technology system for allowing the insurer to monitor and effectively tap into wide-ranging customer segments.

For instance, by keeping a close look on payment methods, the company cannot only better serve its customers, but also use the data for market research, said Katesaphong Natasiri, vice president for bancassurance marketing.

Muang Thai Life Assurance does not balk at any new competition, particularly from TMB Bank, which has recently welcomed its likely new owner ING Group, which is believed to bring with it expertise in retail banking and bancassurance to boost the ailing bank's portfolio of products. Wes predicted that the imminent partnership between TMB Bank and ING Life would become a "good player" in the market in the next two to three years.

Last year, bancassurance business contributed Bt4.5 billion to Muang Thai Life Assurance's Bt13.8 billion of total premiums - a 135-per-cent increase, according to Katesaphong. The company looks to top that up to Bt6 billion this year, focusing on growing its middle-income segment - those with salaries from Bt15,000 to Bt100,000 - to at least Bt1.6 billion, he added.

But the volume of turnovers and double-digit growth are secondary when it comes to setting aside a sizeable reserve, said Sara. The company's solvency is healthy, with a reserve fund of Bt6 billion, which is eight times the standard percentage requirement set by the Office of the Insurance Commission and twice that of the European Union standard, he said. The company will also strive to improve its BBB+ S&P rating.

What remains to be closely watched is the merger with Phatra Insurance - also a Lamsam-family business - this year, which might propel the merged entity into the top-five of the insurance companies, in terms both of premium and policyholder volumes.

Ki Nan Tsui

The Nation