Siam City touts micro-policies

Siam City touts micro-policies

Siam City Insurance Co, a non-life insurance operator, will sell micro-insurance to cash in on the large market of low-income consumers.

The expansion is also in line with the policy of the Office of the Insurance Commission (OIC) to have more people covered by insurance.

The policy sells for small premiums starting from 1,000 baht a year.

Chief executive Natdanai Indrasukhsri said the firm will launch the personal accident product tomorrow with the low premium of 199 baht a year for coverage of 100,000 baht.

It claims to be the first non-life insurer to tap into the micro segment after a number of life insurers have done the same for a couple of years.

A maximum coverage of 100,000 baht is for death and 50,000 baht for permanent disability caused by accidents excluding motorcycle crashes.

The insurance product, which has already been approved by the OIC, will be available at convenience store chains, mom-and-pop shops and post offices.

Mr Natdanai expects the product will receive a good market response and expand to cover remote areas since the OIC allows non-licensed sale agents to distribute it.

Thailand's insurance industry has been active, enjoying solid growth of 20% last year thanks to the improving domestic economy and the expanding micro-insurance sector.

The overall insurance industry's value based on total written premiums was estimated at 564 billion baht last year, according to the OIC.

In the first 11 months of last year, total premiums were 507 billion baht, up by 20.7% year-on-year.

Life insurance accounted for 344 billion baht and non-life for 163 billion baht, up by 17% and 29% year-on-year, respectively.

Some 20.6 million life policies are active, putting the insurance holding rate at 31% of the population.

For the non-life segment, 47 million general policies are in effect covering 72.7% of the population.

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