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business

  Insurers merge as Tokio Marine Safety Insurance 


TOKIO MARINE Safety Insurance (Thailand) Plc, a company now being created through the merger of its two major arms, is aiming to be one of Thailand’s leading insurers with a gross written premium (GWP) target of Bt21.7 billion in 2022.

Last year saw Tokio Marine Holdings, Inc acquire insurance businesses in Thailand and Indonesia under Safety Insurance Plc. And now, both Tokio Marine Insurance (Thailand) Plc (or Tokio Marine) and Safety Insurance Plc (or Safety) have announced they have a roadmap to integrate under one company name – Tokio Marine Safety Insurance (Thailand) Plc.
The process should be complete in early 2020 subject to approval from the Office of Insurance Commission (OIC). 
Tokio Marine Safety Insurance (Thailand) Plc sees opportunity ahead as it aims to be a leading industry player in the Kingdom, with a GWP target of Bt21.7 billion and a net profit of Bt 1.1 billion in three years. To do that, it will provide various products and services meeting a global standard and offer service locations nationwide, says its chief executive Suteechai Santivarakum.
The company has already submitted its OIC application for the integration process and expects the legal process to be completed by early 2020. It strongly believes that merging the two companies will result in each a coordination and maximisation of each of their competitive advantages for the greater benefit. This “synergising for the future” will benefit both individual customers and Thai society, according to the company.
“We aim to achieve GWP target Bt 21.7 Billion with a net profit Bt 1.1 Billion. In moving toward the premium and profit targets for 2022, the company expects to grow both the top line and the bottom line by 4-5 per cent every year.
“Our business goal is to be one of the most selected insurers with the trust of customers as our foundation, followed by our ‘to be a good company’ vision,” Suteechai said.
Tokio Marine Safety Insurance (Thailand) Plc leads the integration rationale by maximising competitive advantage and build synergies as ‘One Team’, he added. 
The two companies have different key strengths. Tokio Marine has strong J-Biz (Japanese business clients) partnerships and is a leader in the marine insurance business. Meanwhile, Safety is one of the Thailand’s leading insurers long-time achievements, and is one of the leaders in the motor insurance business with a claims service network nationwide and solid retail customer relationships.
As a consequence, the integrated business will be more comprehensive and deliver products and services to customers conveniently, in accordance with the customer’s needs and at affordable prices, the company argues.
Hironori Kiryu, president of Tokio Marine Insurance (Thailand) Plc said the company believes in the synergy concept of “1+1 is greater than 2”. Working as one team, there will be a lot of great benefits and opportunities for Thai society, customers, business partners and employees from both companies, he said. 
Being part of Tokio Marine Group, Tokio Marine Asia as a regional headquarters will communicate with Tokio Marine Holdings Inc to share knowledge and global expertise in the area of digital to extend the most benefits for Thai customers, said Shinkichi Mike Miki, the managing director of Tokio Marine Asia Pte Ltd.
Tokio Marine Safety Insurance (Thailand) will consist of five pillars of business: 1. The branches, numbering over 100 and the service network coverage nationwide; 2. Japanese business clients who, along with companies operating in Thailand and other Mekong countries, have a solid trust relationship with the company; 3. Agents and brokers taking advantage of global and local expertise; 4. Dealers and OEM supported by strong relationships with OEMs and a broad dealer network; and 5. Alternatives, the opportunities that present through B2B2C, affinities, and leveraging digital tech in Tokio Marine Group. 
 

Published : June 04, 2019

By :   THE NATION