Counter Service Co Ltd, the payment service provider of Charoen Pokphand Group's CP All Plc, plans to sell the microinsurance policies of five leading insurance companies.
The insurers are Muang Thai Life Assurance, Bangkok Insurance, Muang Thai Insurance, Alliance Ayudhya Assurance and Thaivivat Insurance.
Microinsurance will be added to Counter Service at most of CP All's 7-Eleven stores nationwide.
The move will give rural people easy access to both life and non-life insurance coverage.
Weeradej Ackapolpanich, assistant vice-president of Counter Service, said the company is the country's first to be granted a licence for microinsurance, which is defined as policies with annual premiums of 1,000 baht or less.
Counter Service has 8,500 points of sale including 6,800 in 7-Eleven stores.
The firm's strong networks as well as simple insurance policies and acceptable prices made possible by the partnership will benefit upcountry residents, said Mr Weeradej.
"Microinsurance premiums sold via Counter Service are in the range of 490 to 1,000 baht per year, in line with Office of Insurance Commission (OIC) regulations," he said.
Customers seeking a microinsurance policy at Counter Service can use an identification card with electronic data-capture equipment, then key in their mobile number.
After that, they will pay and receive a pay slip and confirmation via SMS from the insurance company. The policy will be sent to their home address.
The first policy of Muang Thai Life Insurance will be introduced on March 18, followed by products from the other four companies.
The five-year microinsurance plan aims for revenue growth of 5% in the first year and 20% each year after that.
Counter Service last year booked total revenue exceeding 1 billion baht, mainly from bill payment services.
"This is our first step into insurance," said Mr Weeradej, adding that Counter Service will open 850 more branches this year including 550 in 7-Eleven stores.
The OIC expects sales of 300,000 microinsurance policies in the first year, said secretary-general Pravej Ongartsittigul.
It wants growth in both the insured population and insurance premiums to track gross domestic product and per capita income growth.
About the author
- Writer: Somruedi Banchongduang
Position: Business Reporter