Axa Insurance Plc, a Thai unit of the France-based global insurer Axa Group, aims to increase its revenue to 5.2 billion baht in 2023, up from an estimated 4.8 billion this year, by focusing on new products and expanding ties with strategic partners.
Claude Seigne, chief executive of the Thai unit, said the company expects a "Himalayas-like leap" in premiums next year, with profit exceeding the 220 million baht projected for 2022. Axa Insurance estimates growth of about 20% from 2021.
"We are preparing for the increase and developing partnerships to grow even stronger next year," he told the Bangkok Post.
Motor coverage is the backbone of Axa Insurance, generating around 60% of total turnover. Health insurance is expected to see the biggest growth next year, with premiums almost doubling from 400-450 million baht in 2022 to a minimum of 800 million in 2023, said Mr Seigne.
EV COVERAGE
One new product was launched last week at the 39th International Motor Expo: Thailand's first insurance policy tailored to meet the specific needs of electric vehicle (EV) owners. Approved by the Office of the Insurance Commission, the product offers additional EV insurance coverage for Thai motorists looking for a more environmentally-friendly lifestyle.
With a starting price of 19,000 baht, the coverage includes accidental damage or loss of a charging cable (up to 10,000 baht per policy), accidental damage or loss of a home charger (up to 50,000 baht per policy), and third-party liability for the use of home chargers and public EV charging stations (up to 1 million baht per accident). In addition, the policy offers Axa 24/7 Emergency Roadside Service Assistance.
As the automotive industry is going through a major transformation in terms of the technology and R&D to replace gasoline-powered vehicles, Axa aims to be at the forefront by offering innovation that promotes environmental sustainability, he said.
Axa's EV insurance is priced 20-50% higher than conventional motor policies, said Mr Seigne.
"Our new EV insurance products are designed to help individuals and companies in Thailand adapt to this transformation so they can be confident in terms of protection. Our objective is to make their transition to EVs easier," he said.
The number of EVs registered in Thailand has grown by 2.3 times since 2018, expanding from 124,000 units to 284,600. This year, EV sales are projected to reach 63,600 units, an increase of 48% year-on-year, whiles sales of vehicles using internal combustion engines are estimated at 302,600, a decline of 8.8% from 2021.
The growth of EV cars in Thailand has followed global trends in terms of concern for the environment and reaction to rising gasoline and diesel prices, said Mr Seigne. The Thai government's policy of promoting the production of EVs for both domestic and export markets also helped, he said.
The government wants EVs to make up 30% of Thailand's total automobile production by 2030, or 700,000 EVs per year.
ESTABLISHING A FOOTHOLD
Axa Insurance has 1,000 non-life agents in Thailand, 400 of which are active agents, with 17 branch offices upcountry. Axa also offers life insurance in Thailand through Krungthai-Axa Life Insurance, a joint venture with state-owned Krungthai Bank.
Taking charge of Axa Thailand General Insurance in 2018, Mr Seigne was directed to transform the company, which was losing US$20 million per year and ranked 27th among non-life insurance players at that time.
In 2018, the company's premiums totalled 2.7 billion baht but it lost 600 million baht, and it had 550 employees.
This year Axa Insurance generated 4.8 billion baht in premiums and a profit of 220 million baht, while having 470 employees. Axa ranks between 15th and 17th among the 50-plus players in the non-life insurance industry, he said.