Thanachart Insurance, the non-life insurance arm of Thanachart Group, aims to grow total premiums above 5% this year, with the goal of expanding its distribution network beyond the group.
"The company has set a target for total premium growth of more than 5%, above the industry average, with a business strategy for balanced growth in three dimensions -- business, social, and the environment," said managing director Perapart Meksingvee.
The company has not set a specified digit growth target for the next three years as the focus is to balance the three dimensions as well as prepare sufficient human and capital resources to invest in technology and product development to meet customer's expectations, said Mr Perapart.
Last year, the company reported total insurance premiums of 7.5 billion baht, up by 16.9% year-on-year, with net profit registered at 1.051 billion.
The company has more than 1.5 million insurance policyholders and its capital adequacy ratio stands at 797%, 5-6 times the regulator's requirement.
Thanachart Insurance feels that level can cushion operations over the next 3-4 years, he said.
Mr Perapart said the insurance industry will face many changes over the next 3-4 years from intense competition, changes in regulations to meet global standards and changes derived from International Financial Reporting Standard 17, which will be applied to the global insurance industry in the next 4-5 years.
He said the company plans to expand its distribution network outside the group, especially insurance brokers, to help the company penetrate the masses and diversify its customer base.
"We have developed a non-Thanachart distribution channel for about two years and this segment contributes around 25% of total insurance premiums received," said Mr Perapart.
The company does not plan to engage in a price war because insurance companies would rather focus on competition of services, he said.