Bangkok--31 Jul--KASIKORNBANK
KASIKORNBANK aims at advancing their bancassurance business in the second half of 2013 with an introduction of “Can't Work, Don't Worry”, a life insurance policy designed for self-employed customers, offering low premiums starting from 19 Baht a day, coverage of up to 200 percent of the insured sum, and daily hospital benefits of up to 365 days. Over the first half of this year, the Bank earned 21 billion Baht of insurance premiums, up 34 percent over-year, and the figure is expected to reach 40 billion Baht by the end of this year. This will make KBank the number one player in the bancassurance market with a market share of 24 percent.
According to Mr. Pakorn Partanapat, Executive Vice President of KASIKORNBANK, the Bank is enhancing their new life insurance products, which mainly focus on sub-segment customers in order to achieve wider market penetration and become the top insurer in the bancassurance industry. This new “Can't Work, Don't Worry” program is especially designed for self-employed consumers, who normally have no fixed monthly salary and are unable to access alternative insurance services. Still, these customers need indemnification against illness or accidents that affect their ability to work.
The “Can't Work, Don't Worry” program is outstanding in offering low premiums starting at 19 Baht per day and daily hospital benefits of 500 Baht for up to 365 days in the case of accident or illness. The product offers coverage of up to 200 percent of the total sum insured which amounts to 100,000 Baht. The fixed premium payment period is 20 years, while coverage lasts until the insured reach 95 years old. The premium is tax deductible and customers will receive a rebate of 100 percent of sum insured at the end of the policy contract.
“Can't Work, Don't Worry” policyholders will be given special privileges in first-year premium payment via K-Credit Card with a zero-percent interest rate for three months. Interested persons can purchase the policy at any KBank branch nationwide. For public relations purpose, the Bank has allotted over 30 million Baht in a budget for 30-second TV commercials; to be aired from July 31 across the country.
The “Can't Work, Don't Worry” program is aimed to perfectly match the need of the self-employed workforce, who may be the main income earner in a household and have to stop working due to accidents or illness. The compensation from the insurance will help them to make ends meet as their revenues will fall, while expenses remain. This can be a relief for both policyholders and their families. The Bank expects to see at least 20,000 new policyholders taking up this insurance product making a total 140 million Baht in premiums.
Mr. Pakorn added that in the first half of this year, KBank’s total premiums amounted to 21 billion Baht, up 34 percent over-year, representing a market share of 23 percent, of which 11 billion Baht are the first-year premiums, up 39 percent over-year, accounting for a market share of 24 percent.
In the second half of this year, this KBank strategy for their bancassurance business is expected to generate total premiums of 40 billion Baht, an increase of 18 percent over-year, or a market share of 24 percent, of which 20 billion Baht is first-year premiums, a growth of 25 percent over-year.