SET-listed Bangkok Insurance Plc (BKI) has set an ambitious target of raising the ratio of its non-motor retail customers to 25% of policyholders in the next five years in a bid to capture higher-margin business.
Non-motor products, covering personal accident, health and fire insurance, show better margins and have high potential to grow, while low-yield motor insurance is likely to fluctuate, chief executive Chai Sophonpanich said yesterday.
Non-motor insurance now accounts for 7% of its policies.
Chai: Sees high potential
The country's third-largest non-life insurer this year expects premiums of 18.2 billion baht, with 56% generated by non-motor insurance and the rest by car policies.
"Pricing is not our business strategy amid fierce competition and slim margins, so we plan to focus on non-motor insurance products," Mr Chai said.
Individual customers account for 65% of the company's premiums, with corporate customers comprising the rest.
BKI hopes to increase premiums contributed by individuals to 75% of premiums over the next five years in line with its goal to boost non-motor retail customers.
Executive vice-president Apisit Anantanatarat said the insurer had focused on mass-market segmentation to expand personal accident insurance through partnerships.
It offers such insurance for migrant workers in collaboration with the Immigration Bureau and has a deal with Thai Airways International for the national flag carrier's passengers.
For motor insurance, the company concentrates on policy renewals rather than new business. It also targets the high-end market due to better margins.
BKI eyes retail motor premiums of 8 billion baht this year, up by 14.3% from last year.
The oil price slump is expected to encourage car owners, especially those who bought vehicles under the first-time car buyer scheme, to use their cars more often and boost demand for policy renewals.
BKI shares closed yesterday on the SET at 369 baht, unchanged, in light trade worth 443,000 baht.