As the insurance industry expands, with new players entering the market and novel products being launched to capture consumer interest, insurance firms in Thailand have developed strategies to drive business growth.
At Allianz Ayudhya General Insurance (AAGI), part of Allianz Group, a leading financial multinational group, the growth strategies focus on new products, strengthening distribution channels, personnel development, and leveraging the global expertise and network of the German parent firm.
MANAGING RISK
Earlier this week, AAGI launched Allianz Commercial, an insurance solutions provider for corporate customers, including mid-sized businesses, large enterprises and multinationals.
The new company can manage specialist risk in the areas of construction engineering, big infrastructure projects and marine, as well as providing casualty and liability insurance.
The new initiative supports AAGI's target to achieve 20% growth in its corporate business portfolio this year, said president and chief executive Lars Heibutzki.
"This year, one of our key strategies is to continue the expansion of our corporate insurance business to address specific risks faced by large corporations, including business disruptions, natural disasters, cyberthreats and the challenges posed by emerging technologies, which were identified as Thailand's primary concern in our annual Risk Barometer report," he said.
Allianz Commercial is backed by the unique wealth of knowledge, expertise, financial strength and the international network of the Allianz Group spanning more than 70 countries, said Mr Heibutzki.
"The expansion plans in Thailand are part of a broader strategy for growing the business across Asia," said Christian Sandric, regional managing director of Allianz Commercial Asia.
"Thailand is one of our core markets with significant opportunities to leverage our commercial products and capabilities to support the developing needs of local clients. The country's commitment to driving its economy to become a regional economic hub with strong infrastructure readiness makes it an attractive business development opportunity."
Mr Heibutzki said the strategic focus on insuring large corporations through Allianz Commercial should contribute to rapid growth for AAGI, bolstered by the support of Allianz Group and the company's strong foundation as a leading international insurer.
CONTINUOUS GROWTH
He said the non-life insurance business of Allianz in Thailand has grown from about 4 billion baht in gross written premiums (GWP) in 2018 to 6 billion in 2021 and 10.1 billion last year.
"Our 6% increase in GWP beat the Thai industry average of 3.6%," said Mr Heibutzki, who joined AAGI in 2019.
"These achievements include health protection products that are more accessible to customers of all ages, technological advancements in customer service on online platforms, and the acquisition of Aetna health insurance [in May 2022]."
With the strength of Allianz Group, ranked by Interbrand as the world's No.1 insurance brand, the Thai unit has gained the trust of customers worldwide to manage and protect their lives and property, driving business growth, he said.
Globally, Allianz recorded total business volume growth of 5.5% last year to €162 billion (6.3 trillion baht).
By segment, AAGI's health insurance business grew 14% last year, generating 3.2 billion baht in premiums, while its motor insurance business premiums rose only 3% in a "very fragmented insurance market" to 3.3 billion baht.
Non-motor insurance premiums gained 5% to 3.5 billion baht.
"AAGI aims for continuous growth by strengthening distribution channels, developing products and providing superior customer experiences. We are committed to developing and maintaining a professional team and talent, retaining our position as an employer of choice," said Mr Heibutzki.
"With the focus on health and commercial insurance, we are confident 2024 will be another excellent year for our business, with a target for GWP of nearly 12 billion baht."
PRINCIPAL STRATEGIES
To drive growth in 2024, AAGI plans to build on three strategies, the first of which is distribution channels.
By offering comprehensive insurance solutions that meet customers' needs, ranging from retail to small and medium-sized enterprises (SMEs), policyholders can rest easy, enjoying coverage of occupational properties and unforeseen business disruptions, he said.
A new SME insurance package is expected to launch along with international private health insurance later this year, said Mr Heibutzki.
AAGI is taking a cautious approach on offering motor insurance protection for electric vehicles, he said.
The second strategy involves the creation of a modern digital business platform to enhance the customer experience, offering fast and efficient access to services.
Over the past year, Allianz Ayudhya scored higher than average in the Thai market in terms of net promoter score, which reflects how likely customers are to recommend the company to others.
"Our customer satisfaction score was high at 4.8 out of 5, reflecting our continuous improvement," Mr Heibutzki said.
The third strategy is building an organisation of excellence, both in terms of developing the professionalism of its employees and driving employee engagement, he said.
"Employee engagement is another crucial focus for Allianz group. We engage in activities that create and strengthen the bonds for every generation of our employees," said Mr Heibutzki.
Along with benefits that help build employee satisfaction and loyalty, Allianz was ranked one of the most desirable firms to work for in Asia for three consecutive years, according to a survey by HR Asia.