Bangkok--8 Dec--Tokio Marine Insurance
Tokio Marine Insurance (Thailand) PLC reveals its 2014 year to October direct written premium in the amount of 6.4 Billion Baht, a 8.9% reduction from the same period in the previous year. The company expects its full-year 2014 direct written premium to hit 7.4 Billion Baht and announces a landmark 3-Year Business Plan, which outlines strategies to expand into the “Mekong” area and new channels, to become No. 1 in the Dealer and Finance business, and to become one of the top three insurance companies in Thailand.
Mr. Shinkichi Miki, the president of Tokio Marine Insurance (Thailand) PLC, stated that as part of the business plan for the coming three years (A.D. 2015 – A.D. 2017), Tokio Marine Insurance would still adhere to its “Good Company” core values, which apply to the way we treat our customers through delivering on our commitments, the way we take care of our staff through empowering them, and looking beyond profit despite undergoing strategic changes in the next several years which would see tremendous growth that is expected to be higher than that of the overall insurance market in Thailand. This is expected if the goal is to become one of the top three insurance companies in Thailand.
In view of the Asian Economic Community, the Company plans to expand its operation into the Greater Mekong Sub-Region, where it plans to set up a dedicated team to assist customers. This team would support customers looking to expand their operations into Myanmar, Cambodia, and Laos from Thailand by providing information advantageous to their business, as well as providing insurance coverage.
Presently, there are many customers interested in investing in neighboring countries from Thailand and the cross border transactions are increasing rapidly. Tokio Marine Insurance, the No. 1 provider of marine insurance in Thailand, and its Parent Company, the No. 1 provider of marine insurance in the world, are thus very well-placed to support our customers' business expansion into the Greater Mekong Sub-Region.
In addition to our top market position in marine insurance, on 10 November 2014, the Company was granted an A- (Stable) credit rating by S&P which represents one of the highest ratings of all insurance companies operating in Thailand. This rating reflects Tokio Marine Insurance’s robust financial position, good governance, as well as strong support in every aspect by its parent company to operate to an international standard. The Company notices that their customers, especially international companies, are getting more sensitive about insurance company’s credit risk. The Company believes this S&P credit rating should facilitate the Company in obtaining cross border transaction and project infrastructure related businesses.
The Company believes that it still has many business opportunities in offering insurance products through financial institutions (bancassurance). Therefore, the Company has established a unit to help promote tight cooperation with the financial institutions, which shall be an essential part of our plan to achieve the expected growth.
Mr. Yoshiki Nakamura, a managing director, stated that the business performance from January to October 2014 was affected by the overall economy of Thailand, which was driven by the political situations and economic deceleration. Consequently, the direct written premium of 6.4 Billion Baht (Six Billion, Four Hundred Million Baht) decreased by 8.9% compared to the same period in the previous year. Separately, the fire insurance shrank by 25.4%; the marine insurance shrank by 9.0%; the motor insurance shrank by 20.5%; and, lastly, the miscellaneous insurance expanded by 8.3%. Overall, the Company expects to receive the direct written premium in 2014 in the amount of 7.4 Billion Baht.
The 3-Year business plan of Tokio Marine Insurance would focus on 5 major elements as follows: 1. Strengthening the business of motor insurance; 2. Developing channels for agents and brokers; 3. Expanding insurance plans in the part of employees benefit; 4. Creating opportunities through digital marketing channels; and 5. Providing insurance products through financial institutions, where Company aims to ceaselessly support with first class services. In the year 2015, Tokio Marine Insurance would still expect a 13% growth in comparison to the year 2014.
Mr. Paichayon Sutheerapongpun, Executive Vice President (Dealer & Finance Business & Branch OperationMarketing), stated that, in the year 2015, Tokio Marine Insurance would apply the growth strategy by expanding the business into new areas, at the same time as maintaining the existing customer base. In order to build capacities to provide premium quality services for the customers and trade partners, especially in upcountry areas with significant economic growth, the Company has already opened 4 branches in 4 provinces in 2014 (Surin, Chachoengsao, Phetchaburi, and Sakon Nakhon). This puts the number of branches available to service our customers at 24 branches countrywide. Tokio Marine Insurance strongly believes the expansion of branches to cover all areas is essential to gain confidence from the customers and trade partners, both the existing ones and new ones. As such, the Company will continue to aggressively open other branches during the next 3-Year Business Plan period.
As we continue to be consumer-centric, the Company’s policy is to not focus on price competition, but rather to focus on adding value to our customers and trade partners. This follows from the concept of operating businesses for win-win situations where all parties should benefit from our business operations. For example, directing a customer's automobile to a standard paint service center of the dealer who sells automobiles of that brand, as well as forwarding information of the customer's incident, allows the dealer to closely take care of the customer and to provide quality services. This boosts the customer's confidence as he or she knows that genuine spare parts are being furnished and the automobile is being repaired by the distributor of that automobile. If this automobile is to be resold, chances are that it could be sold at a good price, because it has been well taken care of by the services of credibility and quality. This contributes to the customer's decision to buy another automobile from the same distributor. As the result of the aforementioned processes, the insurance renewal of the customers, who bought brand new automobiles, increased in more than 35%, and more than 75% of old customers, who had already renewed their insurance, tended to renew their insurance for another period, the figures which are considered to be extremely high, enabling us to achieve the expected growth.
Tokio Marine Insurance is still moving forward to continuously enhance our relationship with the dealers, under the policy on operating businesses as confidants, by returning business to the trade partners. Moreover, Tokio Marine Insurance assesses hidden risks which our clients may not notice; Tokio Marine Insurance is willingly providing risk assessment as well as providing sufficient insurance coverage to the clients and dealers. By close cooperation with dealers, Tokio Marine Insurance believes that Tokio Marine Insurance will be the closest partner of dealers, and expects to be No. 1 in the business field of Dealer and Finance.