TQM Corporation, the only SET-listed insurance broker, plans to penetrate the third-tier auto insurance market for vehicles that are more than 10 years old using the same concept as low-premium Covid insurance to tap into the market of 9.7 million uninsured old cars, says Unchalin Punnipa, TQM's chairman and president.
He said the company designed a product to help people undergoing economic hardships get through the situation with a campaign called "Small People".
"People's purchasing power declined and they are limiting their spending. Demand for insurance remains, but customers are requesting lower prices or instalment payment plans," said Mr Unchalin.
The series will start from the third-tier auto insurance, which holds the largest share of non-life insurance premiums. A one-year protection from four non-life insurer partners will cost 1,800-2,000 baht with three-phase instalment payment options.
The product targets vehicles more than 10 years old, including 4.9 million vans, 4.5 million personal cars with more than seven seats and 300,000 cars with less than seven seats.
TQM also offers surveyor services from the company's outsource surveyor partner in collaboration with some 200 garage repairs nationwide.
Target sales for the third-tier car insurance is 250,000 cars or 500 million baht within next year.
In addition to car insurance, the company plans to expand the insurance series to the other kinds of protection including health, home and property, travel and accident insurance within next year, he said.
"Online and digital platforms will be a major distribution channel for this product," said Mr Unchalin.
For 2021, the company set its premium sales target at 17 billion baht, a 15% increase from 15 billion this year, driven by sales growth.
TQM expects revenue from investment in Cambodia should also be fully recognised and perform better next year.
He said the company also aims to expand through 2-3 mergers and acquisitions, currently under negotiations, excluding a deal that is expected to be concluded by the first quarter next year.
The company has over 2 billion baht in investment funds to stimulate inorganic growth.
TQM's investment policy is to acquire top three companies that specialise in different segments under the condition the companies must agree to run business with or under TQM's support. TQM will hold 51% of the acquired companies in case of mergers with local partners, and 49% for foreign partners.