DirectAsia.com, a newly formed online insurance broker in Thailand, has set its sights on launching products to capitalise on growth potential for online insurance purchases.
Products in the pipeline include home insurance, said chief executive Michael Parker, adding that the company will explore strategic partners on the basis of one product per partner to hone its pricing strategy.
With 24 million internet users in Thailand and lower costs for the e-commerce channel, the Thai market holds tremendous promise for online insurance buying.
DirectAsia.com, which has a presence in Singapore and Hong Kong, started its online insurance brokering business in Thailand last September with a staff of 30, half of whom are in customer service.
Plans call for increasing the number of employees to 500 in the next five years as the business grows.
In Singapore and Hong Kong, the company offers motor, travel, home and personal accident insurance directly to consumers.
The company in Thailand now offers only motor insurance underwritten by Falcon Insurance.
Southeast Asia has become an investment destination for global insurance players in recent years, given rising demand to protect life and assets, the growing number of middle-income earners and low insurance penetration.
With its online business platform and alliance with Falcon Insurance, DirectAsia.com manages to offer a 5% lower premium to car owners compared with industry peers, Mr Parker said in an exclusive interview with the Bangkok Post.
Its premiums are flexible, depending on customer requirements and personal information. Clients who apply for car insurance via the online channel can customise plans by selecting the level of protection.
Driving record and experience are other factors used to determine pricing.
"In Thailand, car premiums are quite high relative to policyholders' income when compared with Singapore's and Hong Kong's," Mr Parker said. "However, different premiums are also based on the environment of each country."
As it has focused on car insurance renewals, DirectAsia.com is unbowed by Thailand's falling car sales. It is relying on low premiums to draw local customers.
New-car sales plummeted nearly 45% year-on-year to 71,680 units in February, according to Federation of Thai Industries data.
Domestic car sales have fallen dramatically since the second half of last year, with deliveries under the first-car tax rebate winding down.