Krungthai Axa Life Insurance expects at least 17percent growth in new insurance premiums during the first half, thanks to its expanding agency sales force.
"Continuing growth in new insurance premiums will ensure that the firm stays on track to become one of the top five players by the end of this year," chief agency officer Vithaya Charnpanich said yesterday.
The insurer's confidence springs from its strategy to promote sales via a variety of channels including agencies, introducing more pack¬ages aimed at lower income earn¬ers and adding sales points at more bank branches.
The firm's new premiums jumped 17 per cent to Bt790 mil¬lion in the first five months.
In the first half, KrungthaiAxa is tipped to enter the country's top three in new premiums with Bt452 billion, good for a 7.5percent market share among the 24 life insurers in the industry.
The top five insurers by new pre¬miums are AIA, Thai Life, KrungthaiAxa, Ayudhya Alliance CP and Muang Thai Insurance.
The political mess during the past two months would not temper new premium growth, as econom¬ic fundamentals are strong and Thais recover their confidence quite quickly.
This month, new premiums are above the same month last year by almost 20 per cent.
To ensure the growth of new premiums, the company will focus on recruitment to raise its intake of quality new agents from an aver¬age of 150200 persons a month to 200250.
The company has 7,280 agents nationwide, of which 46 per cent are active.
The firm will also try to stimu¬late its agents to become active, bringing the proportion up to 50 per cent. It also plans to build its agent force to 8,000 by the end of this year.
The company operates an acad¬emy for training its agents, with branches in Bangkok, Hat Yai, Khon Kaen and Pattaya. Another location will open by November in Chiang Mai.
The agents will be taught skills to become professional salesmen. The company wants to raise aver¬age sales per agent from Bt22,000 a month now to Bt30,000 by yearend.
Although the firm has promot¬ed sales via a variety of distribution channels, the agency system remains the backbone, generating about 45 per cent of its total premiums.