Dhipaya Insurance (TIP), a SET-listed non-life insurance company, plans to grow next year's total premiums by expanding its retail customer base, focusing on the elderly segment.
Managing director Somporn Suebthawilkul said the non-life insurance industry is expected to grow 2-3% in 2020, up from this year's growth projection of 1%.
"Economic conditions, which are unlikely to fully recover next year, will be a major challenge for insurance companies and this will bring forth fiercer price competition," said Mr Somporn.
The non-life insurance industry has some business opportunities despite the lacklustre economic backdrop as the retail customer base, especially the elderly, provide a chance for growth, he said.
"The number of elderly people in Thailand is growing rapidly. They are near retirement, retiring or already retired," said Mr Somporn.
"This group wants better quality of life and is health-conscious, with an urge to travel as well as for financial independence."
He said the company and product partners will offer integrated non-life insurance products for the elderly, starting with auto and health insurance products.
The same strategy was applied earlier this year among females and the results have been quite successful, said Mr Somporn.
Dhipaya can serve seniors who want financial independence by offering both motor insurance and after-sales services such as car maintenance and vehicle inspection, he said.
The company's non-life insurance business comprises four major units. Motor insurance contributes 18% of total premiums received, with the rest made up of fire insurance, marine insurance, motor insurance and miscellaneous insurance.
Dhipaya also plans to expand its auto insurance business, but wants to keep the portion within 30% of total premiums received to cement its leading position in the non-motor insurance business, said Mr Somporn.
Major shareholders of TIP include PTT at 13.33%, followed by Government Savings Bank (11.20%), Krungthai Bank (10%), Krungthai Panich Insurance (9.99%) and the Government Pension Fund (7.37%).