Bangkok--26 Feb--Krungthai-AXA Life Insurance
Krungthai-AXA Life Insurance PCL reported tremendous 2014 gross written premiums of 48.9 billion baht and announced its readiness to strengthen its leading position in the life insurance market.
Mr. David Korunic, CEO of Krungthai-AXA Life Insurance Public Company Limited revealed that 2014 was another good year for the company despite the political instability in the first half of the year and all-year-round economic slowdown. The company is currently ranked 3rd in the industry in terms of new business premiums and 5th in terms of in-force premiums.
“Despite the economic slowdown and political reforms in Thailand last year, our effective multi distribution channels and strong support from our shareholders have greatly contributed to our achievements in solidifying Krungthai-AXA as a leading player in the Thai life insurance market. This year we will focus on customer-centric marketing strategies as well as deployment of new technologies to support our distributors and provide greater convenience for our customers. I believe these plans will definitely help bring Krungthai-AXA to the forefront of digital transformation of the insurance market”.
Mr. Nicolas Fauvarque, Chief Financial Officer revealed that the company reported first-year premiums of 15.5 billion baht last year, up 29% from 12.1 billion baht in the previous year while total premiums surged 29% to 48.9 billion baht.
The management expense ratio was 5.8% reflecting excellent expense management and efficient financial controls. In addition, its assets under management have grown 45% year on year to 133.9 billion. The company’s investment portfolio remained relatively stable with equities accounting for 8%, government bonds 83%, short-term 4%, and other 5%.
Mr. Roger Deacon; Chief Distribution Officer revealed that the company’s multi distribution channel philosophy has significantly contributed to the company’s growth. Among the three distribution channels, bancassurance was the major contributor for the company’s earnings in 2014. First-year premiums from bancassurance showed a tremendous growth of 41% over the previous year, accounting for 9.2 billion baht. Agency continued to grow year on year with first-year premiums of 6.1 billion baht, up13% year on year and corporate solutions generated 181 million baht representing a growth of 41%. The exceptionally strong growth of new premiums from bancassurance was a result of continued support from our jointed-ventured partner - Krungthai Bank which has been proven by the great success of the launch of the new savings product early last year, plus the i-Wish product launched in November which was eligible for tax deduction. Moreover, the company’s commitment to the development of its distribution continued with the opening of its 5th learning and training centre (Krungthai-AXA Academy) in Surat Thani in addition to its existing four academies in Bangkok, Chiang Mai, Khon Kaen, and Hat Yai. The Krungthai-AXA Academy reflects the company’s strong commitment to provide the best support to enhance knowledge and skills of its people which is an essential part of the company’s core strategy.
Mrs. Saifon Sutchasila; Chief Marketing Officer stated the Thailand life insurance market is expected to be highly competitive in the digital space as modern customers are more digitally driven.
To keep pace with evolving customer needs and behaviours, Krungthai-AXA is therefore investing in customer-centric technologies in an effort to increase brand awareness through all digital channels and to direct customers into point of sales. This year, we will put greater focus on customer centricity and leverage all digital assets to better connect and engage with our target customers through these following marketing activities:
- Increase in marketing investment to build brand awareness through integrated marketing communications including advertising, digital marketing and social media such as Facebook, LinkedIn, as well as the closed social media channel through Krungthai AXA’s official LINE account. The company has already released two sets of ‘Knight Protector’ stickers for the messaging app LINE, of which the latest one has surpassed 6.4 million downloads and been used 58 million times, in just one month.
- Redesign of the company’s website to be more responsive and easy to access and compatibility with all devices. The new responsive website is designed to be more customer-centric and content-rich with useful information and a wide range of product information specifically designed to meet each specific need of our target customers.
- Provide e-Contacting channel to connect our distributors with our target customers who are digitally driven. The company is a market pioneer that offers Online Lead Appointment services, allowing customers to make appointments online with Krungthai-AXA agents and/or chat with our Live Chat agent for basic financial planning and/or product information via www.ktaxa-iservice.com.
- Introduction of the i-Protect online game which is one of the digital initiatives, targeting to increase financial planning awareness of Gen Z as well as directing target customers to the point of sales through Online Lead Appointments. Krungthai AXA’s i-Protect Game is now available for download on both the Play Store and App Store and PC platform
- Continue to offer innovative products that meet customer needs and cover every stage of life.
- Continue to provide Caravan Health Check services throughout Thailand.
- Continue to carry out CSR initiatives in order to build a stronger society under the concept “Giving opportunity, not Charity” through various corporate responsibility angles.
Mr. David Korunic added that technology will be a major driver for business growth. This year, we have deployed new technologies to respond more effectively to customers’ needs and handle customer service in an efficient way. My AXA Health application has been released to offer an easy, convenient way for Krungthai-AXA Health Insurance policyholders to check the status of their claims online and details on health policy coverage including benefits, limits and exclusions as well as searching for medical clinics and hospitals by location and other useful information. Customers can simply log in to www.myaxahealth.com or download the application on App Store. We are also currently running a pilot project called DLFE which stands for Digital Life Front End, a new package to provide greater convenience and faster service for our distributors and customers including e-FNA, e-Illustrations, e-Application, e-Payment etc.
To continue building a great company and achieving excellent performance, at Krungthai-AXA, we will continue focusing on people development. This year, we aim to become the preferred employer. To achieve this goal, we have launched our Employer Branding campaign to showcase our unique “Employee Value Proposition” in various aspects, including supports for employees’ career development, job mobility, better health benefits for employees and their families, multicultural working environment, support on profession courses and exams etc., through employee testimonials and internal and external communications via online media and promotional videos. The project was kicked off in mid-January this year, with an aim to attract top talents in the market to join our company and to become the Employer of Choice.
Krungthai-AXA Life has been through exceptional growth over the last 8 years and relatively stable over those years in terms of management. This year in order to more effectively set the Company up to meet future strategic challenges there has been some restructuring that has resulted in some specific movements in senior management:
1. Ms. Poramasiri Manolamai (former CBO) has been appointed to a newly created role of Deputy Chief Distribution Officer.
2. Mr. Sutat Larpkiattawon (former CCO) has been appointed to the role of Chief Bancassurance Officer. Khun Sutat joined Krungthai-AXA in 2005 and has worked in many departments.
3. Ms.Wanee Duangchalomnin has been appointed to the role of Chief Corporate Solution Officer. She has been working with Krungthai-AXA for 9 years mostly in the Bank Administration area.
Lastly our CFO Khun Nicolas Fauvarque has received a promotion to the position of Regional Chief Risk Officer and Regional Chief Actuary. We are currently conducting an international search Khun Nicolas’s replacement.