Bangkok--10 Jun--KASIKORNBANK
KASIKORNBANK is offering a new insurance product, “Super Saving Life Insurance” (Pro Saving 510), an insurance policy plus savings tailored to medium-income customers. With maximum returns of 3.5 percent and an annual 2-percent cash rebate, policyholders are required to pay premiums for only five years to receive 10-year coverage. Premiums paid are tax-saving, and upon expiration of the policy, customers will gain a total of 130 percent of the sum insured. The Bank plans to sell at least 50,000 policies through this product. KBank’s total premiums over the first four months of this year grew by as much as 34 percent.
According to Mr. Pakorn Partanapat, Executive Vice President of KASIKORNBANK, KBank’s new insurance product, “Super Saving Life Insurance” (Pro Saving 510), is an insurance policy plus savings with the best offer of low premium payment and high benefits. Customers are required to pay premiums for only five years to receive 10-year coverage, with an annual 2-percent cash rebate from the first to the ninth year, and 112 percent upon expiration of the insurance policy in the 10th year. Therefore, the holder’s total benefits will reach as high as 130 percent of the sum insured. Premiums paid are tax-saving. The targeted policyholders are one-month infants to those aged 65 years, with a sum insured of 100,000 Baht to 1 million Baht.
A KBank survey found that the market size of the middle-income segment is as large as 12 million persons. This high-potential market comprises customers who are eager to achieve success in life at a young age, while seeking investments as they prefer a secure and comfortable life. “Super Saving Life Insurance” (Pro Saving 510) is an insurance policy plus savings which requires a relatively low premium payment compared to similar products of other companies, but offers equal or higher returns. The product is expected to be attractive among medium-income earners since it will not only offer insurance coverage but also a savings alternative. KBank targets the sale of at least 50,000 policies under this new product.
Performance of K-Bancassurance over the first four months of this year was satisfactory, with new premiums totaling 8.6 billion Baht, an increase of 34 percent over-year, while total premiums registered 16.5 billion Baht, growing 30 percent over-year. Amid economic volatility, the overall 2014 insurance business, both life and non-life segments, is expected to grow further, albeit with a slightly lower rate than last year. Life insurance is likely to grow 12 percent, while non-life insurance will increase approximately 10 percent.
According to the Thai Life Assurance Association, over the first three months of this year, total new premiums from all sales channels registered 50 billion Baht, an increase of 32 percent over-year, while total premiums equaled 135 billion Baht, up 23 percent. As for bancassurance, new premiums over the same period were 32.8 billion Baht, a jump of 45 percent, while total premiums were 65 billion Baht, rising 43 percent over-year. The bancassurance performance reflects its major role in supporting overall life insurance business growth so far this year.
Mr. Pakorn added that KBank, as the leader in the bancassurance industry, aims at stable and sustainable growth and strives to live by our policy to present the best products with excellent service, meeting the demands of all customer segments through the Bank branches. To differentiate itself, KBank offers insurance products along with advisory services from K-Expert, with in-depth customer surveys in order to understand the needs of all target customer segments and ensure that customers are offered the most suitable and satisfactory products and services.