TQM posts dip in Covid insurance

TQM posts dip in Covid insurance

New trend is vaccine allergy policies

Covid insurance products from TQM have generated 700 million baht in sales during the first four months of 2021. (Photo by Pornprom Satrabhaya)
Covid insurance products from TQM have generated 700 million baht in sales during the first four months of 2021. (Photo by Pornprom Satrabhaya)

TQM Corp's average daily sales for Covid-19 insurance dropped to about 10,000-20,000 policies in May, a level expected to continue until June as health concerns intensify amid the outbreak, says Napassanun Punnipa, TQM's chief executive.

In April TQM recorded 500 million baht in premiums received for Covid-19 micro-insurance, a type of protection covering claims related to the disease.

The April figure equals the total for all of 2020, spurred by spikes in new infection cases, which generated public unease.

Mrs Napassanun said Covid insurance products generated 700 million baht in sales the first four months this year, with a surge in demand after the Songkran festival when daily sales leapt to 30,000-50,000 policies.

However, demand for the product slightly declined this month while average daily sales dwindled to 10,000-20,000 policies, a level expected to continue until June as customers return and buy a second policy for medical expenses related to the disease.

She said the company upgraded the forecast for premiums received from Covid insurance in 2021 to 1 billion baht, up from the previous forecast of 200 million.

In terms of insurance for vaccine allergies, TQM has not reported any claims for this ailment.

However, Mrs Napassanun believes this product has high potential for growth as people have become more concerned about side effects since the mass vaccination scheme started.

In response to this trend, Dhipaya Insurance is offering 1 million free insurance policies for vaccine allergies with protection of up to 100,000 baht for the first million people registered in May.

According to data from the Office of the Insurance Commission, from February 2020 to April 22 of this year Covid insurance tallied 13.8 million policies. Total premiums received stood at 5.92 billion baht.

The accumulated value of claims is 195 million baht since February last year, including the value of claims in the first quarter of 2021, recorded at 93 million.

Many insurers revised product features such as increasing premiums while reducing the amount of coverage, especially for lump-sum payments for a diagnosis of Covid-19, according to Bangkok Post's market survey.

For example, around mid-April, Southeast Insurance priced its premium package for Covid insurance at 1,037 baht for a lump-sum protection of 200,000 baht in case of Covid diagnosis and accidental death.

However, last week the premium jumped to 1,369 baht for a lump-sum payment of only 50,000 baht upon diagnosis, offset by up to 100,000 baht coverage for medical expenses, 1 million for coma patients, 1,000 baht daily remuneration in case of income loss for a maximum 15 days, 50,000 baht for accidental death, and 50,000 baht for vaccine allergies.

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