Krungthai Panich Insurance (KPI) wants to grow its total premiums by 10% next year amid concerns about rising natural disaster risks, the use of new accounting standards, and risks from electric vehicle (EV) insurance.
President Suchavadee Sanganong said KPI missed its targets this year, with total premiums expected at 4.5 billion baht and around 500 million baht in net profit. In 2023, the company posted insurance premiums of 5.5 billion baht and a net profit of 600 million baht.
The decrease was attributed to the termination of a motor insurance partnership with Roojai, which established a business on its own, as well as rising natural disaster insurance claims, as flooding caused roughly 200 million baht in damages.
"For car insurance, the company continues to take care of existing customers, including EV owners, but is offering less EV insurance policies to new customers. We must be careful in setting EV premiums because it is risky," she said.
Domestic new car sales this year will tally less than 800,000 units, nowhere near the target of 1 million, said Ms Suchavadee.
The property and casualty insurance business grew by 10% this year, but the premiums are smaller than those for motor insurance. Accident and health insurance were flat, but KPI believes the business has ample room for growth in the coming years.
The company has an investment portfolio of 7 billion baht, with a return on investment of 4.5-5% per year. Normally the investment portfolio increases by 10-15% annually.
This year, profit from the investment portfolio accounts for 60% of total profit.
For next year, KPI has concerns about the growing risk of natural disasters, changes in accounting standards, and the instability of EV insurance, she said.
Over the next five years, KPI wants to deploy advanced technologies to increase efficiency in business processes, including planning strategies to develop the team's potential, which is the core of organisational development, said Ms Suchavadee.
These strategies include strengthening talent retention, reducing skills gaps, building employee engagement and leadership development, all of which are critical for developing a strong and sustainable organisation, she said.
In a related development, Roojai Group, the country's leading online insurance company, yesterday announced the acquisition of DirectAsia Thailand from Hiscox Group.
With the acquisition, Roojai increases its market share with a combined portfolio of more than 300,000 vehicles insured in Thailand.
In 2023, Roojai acquired FWD General Insurance from Boltech and rebranded it to Roojai Insurance earlier this year, becoming the largest full-stack digital insurance company in Thailand focusing on retail insurance products.
"DirectAsia and Roojai share the same vision of making insurance simple and bringing competitive prices to good drivers," said Roojai founder and group chief executive Nicolas Faquet.
"The consolidation will deliver synergies that support our expansion of the direct insurance model."
