Muang Thai Life targets 20% growth

Despite the flood crisis last year, Muang Thai Life Assurance has set itself the challenge task of achieving more than 20 per cent growth in total premiums to more than Bt45 billion this year.

As the country's second-biggest life insurer in terms of new business, the company still sees bright business prospects this year thanks to its successful multi-distribution channel strategy to bolster customer base. Its new business is also predicted to increase by 20 per cent this year.

The company sees room for growth for years in Thailand's insurance industry to reach out to the more than 60 million population. The number of policyholders has reached only 30 per cent of the population. In addition, its new creative products are drawn up to serve more customers' needs, both in savings, protection and investment.

The company also reported its operations results for last year. Total premiums jumped 28 per cent to Bt37.88 billion. Of the total, new business accounted for Bt16.33 billion, up by 25 per cent and Bt21.52 billion renewal premiums, an increase by 30 per cent.

Thailand's insurance industry grew by 12 per cent during 11 months of last year and is predicted to expand by 10-15 per cent this year, according to the Thai Life Assurance Association.

Sara Lamsam, president and chief executive officer of the company, said that all business channels grew against the industry's growth. Focusing on sales of new business via agent and direct marketing surged 42 per cent each, bancassurance increased 21 per cent and group insurance rose 12 per cent.

The business channel, including bancassurance, is the major revenue generator accounting for 60 per cent of total premium.

"The insurance business will grow further for a while with great business opportunity as the customer base is expanding. A growing, well-educated middle-class, which will be entering elderly society, will encourage continued growth of the business," said Sara.

Sara said the company has worked on designing its products to serve market demand, both general customers - who still focus mostly on savings and protection - and also over the bank counter customers who are looking at insurance coverage and investment opportunities. As a result, the company has to draw up specific products to serve its six bank partners, who have different demands and target customer groups.

Recently, the company has undertaken restructuring to cope with rapid change in the market not only from globalisation but also the upcoming seamless trade under the Asean Economic Community by 2015.

Pakineenard Tiyachate, director and senior executive vice president of the company, said good result operation is still reflected in its strong financial status as total assets reached Bt116.39 billion, up by 25 per cent, total asset investment achieved Bt110.62 billion, insurance reserve stood at Bt97.59 billion and insurance fund reached Bt14.91 billion last year.

The company also plans to increase the number of sales agents from 22,000 last year to 30,000 this year.