Thai Life aims at 40% premium growth | Bangkok Post: business

INSURANCE

Thai Life Insurance Co is pinning its hopes on a multi-channel distribution strategy to drive business this year.

Bancassurance, telesales and other direct marketing will increase, says president Chai.

The country's third-largest life insurance company has set an aggressive growth target for new business premiums of 40% on top of the 8.21 billion baht it collected last year.

President Chai Chaiyawan said his company will accelerate its performance through various channels in addition to its sales agents.

Sales agents have remained a core engine driving business and premiums thanks to a pool of more than 50,000 agents who help contribute up to 90% of the company's written premiums.

That channel last year posted 22% growth, outpacing an industry that expanded by 17%.

Selling insurance through bancassurance, telesales and other forms of direct marketing will accelerate, Mr Chai told a meeting held to celebrate the company's 70th anniversary this year.

At present, the company is collaborating with three banks _ Bank of Ayudhya, CIMB Thai and Tisco Bank _ to sell insurance products through their branches.

Mr Chai said sales from bancassurance and telesales were also high, and the contributions drew total premiums to 36 billion baht last year, up by 8% from 2010.

New-business premiums expanded by 4% year-on-year to 8.21 billion baht.

Besides beefing up sales channels, Thai Life plans to maintain financial strength. Standard & Poor's has assigned it an A-/Stable rating and says the firm has an excellent risk-management plan.

In terms of investment policy, Mr Chai said the company plans to focus on fixed income, which accounts for more than 80% of total investment assets.

Of the rest, 4.8% is bank deposits and the balance is in the form of government and state bonds.

Meanwhile, an industry expert said bancassurance has become a strong channel, contributing half of the 470 billion baht in premiums collected by Thailand's life and non-life insurance industries in 2011.

Commercial banks have enjoyed growing fees from selling insurance, prompting many of them to make available a wide range of insurance products at the counter.

But agents remain an important force, especially those with financial skills, the expert said.

The Thai Association of Insurance and Financial Advisors lists 400,000 sales agents doing business.