Insurance sales through banks in the year ’63 flare up, 11-month update numbers shrink more than 16%, poisoning downward interest – businesses gradually stop selling savings insurance, “Muang Thai Life Insurance”, adjust the plan year ’64 Focus on selling life protection products – health insurance. / Serious disease Including selling new products “Index Link” instead to sell through “Thai Credit” new partner, “Thai Life Insurance” sign “CIMBT” Bank Assurance channel for the next 3 years
A source of news, senior management in the life insurance industry revealed. “Prachachat Business” that in the first quarter of 2021, insurance sales through banks (Bank Assurance) should see a phenomenon where the new premium is negative more than 10% compared to the same period last year. Since the first quarter of 2020, SCB Life Assurance PCL (SCB LIFE) has sales of savings insurance more than 200%.
But this year the market has been assessed Big new pawns may not have. And did not see any signs that the premium had collapsed like in the past Both with the low interest rate situation And sales that are not good for every company
For the year 2020, it was found that the latest figures for the first 11 months (Jan – Nov 2020), the whole life insurance business, had insurance sales through banks at 209,641 million baht, a decrease of 16.33% from the previous year. The top 5 companies with the highest sales are: 1. FWD Life Insurance Plc. (FWD) has a total insurance premium of 61,406 million baht, market share. (Market share) 29.29%
2. Muang Thai Life Assurance (MTL) has a total insurance premium of 41,888 million baht, market share 19.98% 3. Krungthai-AXA Life Assurance (KTAL) has a total insurance premium of 23,712 million baht, market share 11.32% 4 Thai Life Insurance Plc. (TLI) has total insurance premiums of 18,859 million baht, market share 9%, and 5. Bangkok Life Assurance (BLA) has total insurance premiums of 18,152 million baht, market share 8.66%.
Mr. Sara Lamsam Managing Director and Chief Executive Officer Muang Thai Life Assurance PCL said the company has revised its portfolio by eliminating the sale of products that are sensitive to interest rates. By reducing savings insurance products Turn to focus on life protection products and health insurance / critical disease (protection & health) products.
In 2021, it aims to maintain protection & investment coverage at 70% while savings insurance will continue to decline to 24% and will sell index linked products (life insurance in Low interest That provides both life protection Principal protection And the opportunity to receive investment returns in the form of dividends), which will be less affected by changes in the government bond yield curve (yield curve).
While news sources from Muang Thai Life Assurance PCL said that this year the company will expand cooperation with a new bank partner, Thai Credit Bank. Which is a long term contract The press release is expected to come soon, with the first product being tested to capture the market, index-linked, and then to develop an insurance design specifically for the bank’s customers in the future. From the foundation to the upper level
“After this index-linked product, there should be some new features, such as new foreign fund managers from current CitiGold, term of investment, a combination of guaranteed and dividend yields. (participating) and may include an additional contract (rider) included in the main policy, ”the source said.
The source added that the company is in the process of negotiating further cooperation with TISCO Bank. At present, there are four bank partners: Kasikorn Bank, Bank for Agriculture and Agricultural Cooperatives (BAAC), Islamic Bank of Thailand. And Land and Houses Bank (LH Bank) and the Leasing Group In which this year set a target for new premiums through banking channels (Excluding Kasikornbank) grew 10-15% from the same period last year
Mrs. Varang Chaiyawan Director and Senior Executive Vice President Thai Life Assurance PCL said that this year the company signed a new contract with CIMB Thai Bank (CIMBT) for a period of 3 years (2021-2023) to sell life insurance for credit protection (MRTA), savings insurance. Property Whole life insurance And life insurance combined with investment (unit-linked and universal life)
By targeting the first year insurance premiums through CIMB Thai of at least 1,500 million baht and an average growth rate of 10% per year with the policy retention rate of at least 90%.
Read the original news: Trend to stop “savings insurance” dragging premiums through bank deposits
Source: ประชาชาติธุรกิจ by www.prachachat.net.
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