AIA Thailand, a subsidiary of the Hong Kong-based multinational insurer, has devised a new strategy and a healthcare product to offer protection to Thais aged up to 99 years, aiming to maintain its leading position in Thailand's life insurance industry and ensure strong future growth.
The value of the company's new business increased 21% last year, beating growth in the life insurance market and reaching a record high of 24.9 billion baht, said CEO Nikhil Advani.
AIA's strategy for 2024 is to elevate the comprehensive care of Thais to live heathier and longer lives by offering healthcare solutions that provide protection for Thais aged up to 99 years.
"With the trend of increased life expectancy and the possibility of living up to 100 years old thanks to medical technology advancements, it's crucial to ensure that our health span aligns with our lifespan. Many people face financial challenges in their later years if they haven't saved enough for healthcare expenses," he said.
Together with the new healthcare solution, AIA Thailand recently launched the "Living to 100" campaign to encourage Thais to plan for their health and finances to live healthier, longer, better lives, said Mr Advani.
RECORD YEAR
He said the value of new business in 2023 was the largest in AIA Thailand's 80 years of operations, thanks to growth in the agency and bancassurance channels.
AIA Thailand's robust agency channel comprises 50,000 agents nationwide, who were considered the best in the market as of December 2023. AIA Financial Advisor has also grown substantially, surging 28%.
"We continue to lead in the life and health insurance industry, with the highest market share in every dimension," said Mr Advani.
In terms of annualised new premiums, AIA had a market share of 24% last year, while its additional health coverage sales claimed half that level in the Thai market. The company's market shares in additional critical illness average sales and investment-linked life insurance (unit-linked) sales tallied 57% and 59%, respectively, along with a 22% share in group insurance sales.
"By leveraging technology in the straight-through process of policy applications, we achieved a high automation rate of 87%, significantly enhancing our ability to approve individual life insurance policies, reaching up to 1,500 policies per day, and processing claims of up to 9,000 cases daily," he said.
ALPHABET STRATEGY
Mr Advani said AIA is following an "ABCDEF" strategy in Thailand.
A stands for "agency transformation", meaning modernising agency channels through digital technology to drive efficient work processes and improved customer service, along with quality recruitment of sales agents.
B stands for "business partner acceleration" by expanding collaborations with partners to drive rapid growth of the partner channel.
C stands for "customer-centricity", while D is for "digital journey", reflecting AIA's path towards becoming the first digital insurer in Thailand, focusing on innovation and an all-in-one application for customers and agents.
E reflects "employee well-being", meaning the company values healthy employees by fostering workplace equality and allowing staff to voice their opinions.
F refers to "future healthcare", as Mr Advani said AIA aims to provide quality and sustainable healthcare for Thais.
Using this strategy, AIA is committed to offering solutions that meet customers' needs, while ensuring all Thais have access to standardised medical services, as well as appropriate personalised health protection.