Bangkok--16 Sep--KASIKORNBANK
KASIKORNBANK and Muang Thai Insurance Pcl. (MTI) aim to be the top player in the general insurance market through bancassurance within the next three years. A first-class motor insurance product, the Car Protect 1 “Easy Buy and Claim” package, has been introduced with 5,000-Baht compensation during auto repairs and 24-hour emergency roadside assistance. No car inspection is needed for this insurance policy. With average annual growth of 20 percent, the non-life insurance industry is expected to see consistent, healthy expansion, while KBank and MTI project 2 billion Baht of premiums for the business in 2014.
According to Mr. Pakorn Partanapat, Senior Executive Vice President of KASIKORNBANK, the general insurance market will continue to surge. Thailand’s non-life insurance premiums to GDP register 1.7 percent, still less than the 2.81-percent global average. Therefore, there is relatively more room for the business to grow in this country, compared to the world’s major economies and global trends. Over the past five years, Thailand’s non-life insurance has expanded at an average of 5 to 10 percent, while the business conducted through the bancassurance channel has risen 20 percent. This reflects consumers’ awareness of planning to mitigate overall risk.
KBank, in collaboration with MTI, is presenting diverse general insurance products through more than 1,000 KBank branches, in response to growing market demand. The insurance firm will help design and develop complete non-life insurance products under K-Bancassurance. A variety of simple general insurance packages will be offered under three concepts, namely easy and simple products, affordable premiums, and matching all customer segment needs.
Initially, the general insurance business under K-Bancassurance will concentrate on products and services for passenger vehicles, as there are more than 12.9 million registered cars across the country, with total motor-insurance premiums across the market of about 59.27 billion Baht, or 58 percent of total non-life premiums. At present, four packages of motor insurance are available. The most prominent package is Car Protect 1, in which customers are exempt from having their vehicles inspected prior to buying the insurance. K-Bancassurance is the first insurer to offer 5,000 Baht of compensation during repair, up to three repairs annually. There will be 24-hour emergency roadside assistance under the “Muang Thai Smile...When Your Car Breaks Down” project. Car Protect 1 premiums start at 13,400 Baht. Other packages – Car Protect 3, Car Protect 3+ and compulsory motor insurance – are readily available for customers to select at any KBank branch.
In addition to motor insurance, K-Bancassurance also offers other general insurance services, such as personal accident insurance (PA), PA for Senior, PA for Executive, PA for Kids, Travel Protection, Health Care Protection, cancer insurance and many others to be introduced in the future in order to cover all our customers’ needs for their life protection.
Mr. Pakorn added that KBank has been able to cultivate close relationships with its customers, accommodating them with better services and advice. Currently, the Bank makes about 1 billion Baht of insurance premiums, with a target of reaching around 2 billion Baht by the end of 2014. KBank’s close partnership with MTI has brought about a wide variety of services for retail and corporate customers. Within three years, KBank expects to become the leader in non-life bancassurance, eyeing insurance premiums of approximately 5 billion Baht, in much the same way as when it gained leadership in life bancassurance.
Ms. Nualphan Lamsam, President and Chief Executive Officer of MTI, said that the company’s collaboration with KBank will focus on product development and the after-sale service network, which shall enhance MTI’s sales channels with more opportunities for the company to offer products to KBank’s 12 million-plus retail customers, notably motor insurance products with outstanding growth potential. The company’s premiums earned total over 2.86 billion Baht, accounting for 4.12 percent of total premiums for the first seven months of 2014. Its 300,000 motor insurance customers nationwide prove existing demand in this market. MTI will keep working to ensure that other types of insurance products are accessible from KBank branches in the future.
MTI runs its business with a commitment to continuously improve services, where customers’ needs have been taken to heart. It has also joined forces with business partners to elevate services. The company offers insurance products that cover risks in all dimensions, ranging from motor insurance, travel insurance, and personal accident and health insurance, to property insurance and commercial insurance. Over the first seven months of 2014, MTI grossed over 5.69 billion Baht of insurance premiums.