Mobile operators are expanding their foothold in the insurance market via partnerships as digital insurance still has a low penetration rate and the business can help support customer retention.
True Corporation partnered with FWD Insurance to bundle insurance products and mobile and internet packages, while its rival Advanced Info Service Plc (AIS) is offering insurance products via the myAIS app to improve its digital service revenue.
Total Access Communication (DTAC) also took the plunge with the dtac dSurance online insurance platform.
"The insurance business has been growing during the pandemic, particularly health insurance, and there are still untapped customers on the digital channel," said Peter Grimes, country chief executive of FWD Insurance.
According to the Thai Life Assurance Association, the online channel accounted for 0.13% of total insurance premiums worth 437 billion baht in the first nine months this year.
FWD is the insurance market leader for the digital channel, he said.
Mr Grimes said he is aware of the headwinds hampering consumer spending, but the pandemic made people realise the importance of health insurance.
Collaborating with True will help FWD reach out to untapped customers digitally, offering more affordable products, he said.
Almost 50% of Thais have used insurance services, but there is still a low number of users on the digital channel, said Tanaphon Manavutiveth, co-group chief commercial officer of True.
During a joint press conference by True and FWD Insurance on Nov 17, they unveiled a product in which True mobile users who purchase the "Big 3 Critical Illness Insurance" starting with a premium of 1,084 baht per year will receive a free add-on internet package worth 1,600 baht.
The package covers cancer, major stroke and acute heart attack.
FWD provides the "Easy E-Health" online health insurance plan, which covers inpatient costs, with medical expense benefits of up to 1.5 million baht per year.
Policyholders of this plan pay a premium starting at 14,342 baht per year and receive a SIM with an auspicious number and a maximum speed internet package worth 899 baht for 12 months.
Other partnership products include True's extra package subscription with free accident insurance.
"Through this cooperation, 40,000 of our customers are expected to apply for insurance services," said Mr Tanaphon.
"This is super convergence combining the strengths of FWD in insurance services and True in data analytics and customer base."
AIS is offering a range of insurance products, including travel, auto and life coverage, through the myAIS app.
In November last year, DTAC launched the dtac dSurance insurance aggregator feature on its mobile app.
The company said the platform received 7.5 million visits within the first year.
The latest insurance product introduced to dtac dSurance is a personal accident policy with additional protection for robbery in front of an ATM and vehicle break-in theft.
"DTAC wishes all Thais to have access to insurance," said How Lih Ren, chief marketing officer of DTAC.
"This is why we created dtac dSurance."
The insurance offerings range from travel, health and personal accident, with the platform comparing features to help customers choose the right policy, he said.