TQM Corporation Plc, a SET-listed insurance broker, has sold more than 1 million Covid-19 insurance policies over two months, making it likely to achieve its premium growth target of 16% this year.
The coronavirus pandemic has led to a run on insurance to manage unexpected risk, with the company exceeding its full-year target of 1 million policies in two months, said chief executive Napassanun Punnipa.
"The company partnered with Bangkok Insurance to launch the policies, expanding the partnership to other insurance firms," she said.
Apart from Bangkok Insurance, TQM now sells Covid-19 insurance for three other insurers: Asset Insurance, Dhipaya Insurance and Viriyah Insurance.
TQM's initial sales target for Covid-19 insurance was 300,000 policies in the first quarter.
With the strong demand for Covid-19 insurance, the company's total premiums for the first quarter are likely to exceed those of the same period last year and the previous quarter, she said.
Last year TQM reported total revenue of 259 million baht, up 10.2%. Net profit surged 25.5% to 103 million baht.
Insurance brokerage contributes 59% of revenue, of which 95% derives from non-life insurance, with the remainder from life insurance products. Service and other items account for 38% and 3% of revenue, respectively.
Mrs Napassanun said the company's revenue from insurance broker business was not adversely affected by the country's stuttering economy, as sales of Covid-19 and property insurance would be able to offset an auto insurance slowdown.
She shrugged off concerns about Covid-19 insurance policyholders' moral hazard, saying the sum insured is so minimal that it would not encourage policyholders to expose themselves to the virus to make claims.
The firm set a strategy to be a regional digital insurance broker by 2026 by expanding into the CLMV market this year through local partners, aiming for total premium of 50 billion baht.
President Unchalin Punnipa said proceeds from the listing on the stock market were used for IT platform investment, which has borne fruit as staff have to work from home during the Covid-19 crisis.
TQM shares closed Friday at 65.50 baht, up 50 satang, in trade worth 81.9 million baht.