TQM plans strategy switch for more face-to-face sales

TQM plans strategy switch for more face-to-face sales

TQM Insurance Broker Co, a telesales-focused insurance broker, expanded its footprint in the face-to-face sales channel in a bid to raise the premium portion of its life insurance and boost overall premium growth by 28% to 10 billion baht this year.

President Unchalin Punnipa said the company can use face-to-face distribution to sell more complicated products such as life and non-life insurance.

TQM decided to enter the new sales channel following the success of a pilot project introduced last year, he said.

The company plans to change its premium contribution structure by increasing life and non-life insurance policies to 15% each this year from 9% and 8%, respectively, last year while lowering motor insurance to 70% from 83%.

TQM's total premiums hit 7.8 billion baht in 2013, outpacing its target of 7.5 billion and surging 30% from the previous year.

Mr Unchalin said the company plans to increase its face-to-face sales agents to 700 at its 76 outlets nationwide this year, up from 100 last year at 20 branches.

"Expanding our face-to-face channel can fulfil what our telesales cannot, and this should help to raise sales," he said.

Chief executive Napassanun Punnipa said the cost of face-to-face distribution appears to be higher than telesales, but its success rate is far greater, making the investment worthwhile.

TQM will focus on cross-selling products this year rather than increasing its existing retail customers from 1 million.

"Our premium target this year is not that ambitious, as over the past five years our premiums grew by about 30% annually," Mr Unchalin said.

TQM plans to launch a personal accident insurance policy with a death benefit from accident or illness, covering brain death and failure of the brain or breathing function, coma and stroke. It also offers compensation in case of unemployment.

It will also offer motor add-ons for commercial pickup trucks, providing compensation for vehicle repairs with coverage that includes damages on goods loaded during an accident.

Land Transport Department data show Thailand had 5.73 million commercial pickup trucks last year.

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