TQM Corporation (TQM), the only SET-listed insurance broker, is studying the viability of cyber-insurance products in response to the growing complexity of cyber-risks in the digital age.
TQM board chairman and president Unchalin Punnipa said digital sales channels are rising following the pandemic, while cyber-risks are growing in tandem as more companies store vital data online.
Mr Unchalin said cyber-insurance in Thailand is in the early stages and the statistical data on cyber-insurance damage here is not yet clear.
"We are studying such products and plan to talk with a few potential insurance companies about a suitable rate that people and businesses can afford for these products," he said.
Cyberthreats include computer systems being hacked or damaged by malware, viruses, the leaking of confidential information, and cyber-attacks that could crash operating systems.
Mr Unchalin said TQM is planning to tap into two new product segments -- professional indemnity insurance and third-party liability insurance -- segments other than cyber that have the potential to grow but are not popular in Thailand.
Auto insurance is TQM's major product. However, health insurance grew quickly in the first half of the year, driven by the Covid-19 pandemic, with 460 million baht in additional premiums.
He said TQM is confident of meeting its target of 15% growth this year, with total premiums worth 15 billion baht.
The target does not include external growth from merger and acquisition deals in foreign countries.
According to the Office of the Insurance Commission, in the first half of 2020, direct premiums of non-life insurance grew 1.9% compared with the same period of last year, while life assurance premiums shrank 5.69%.
However, Mr Unchalin said the Thai insurance market can grow even in a sluggish economy because the market is not saturated and the insurance penetration rate is still quite low.
Thais on average hold 40 life insurance policies for every 100 people and the domestic market has an opportunity to grow by more than 2-3 times.