SET-listed Bangkok Insurance Plc (BKI), a non-life insurance company, targets total premiums to expand by 5% this year, driven by penetration of the retail customer base for auto insurance and Thailand's economic recovery.
The 5% growth target for premiums is estimated to total 16.8 billion baht, based on expectations that Thailand's economic recovery momentum will improve this year, driven by public infrastructure investment projects, tourism and an increase in imports and exports, said BKI president Apisit Anantanatarat.
Besides seeking new customers and expanding insurance premiums through renewals, the company plans to expand into the retail segment for auto insurance, with trucks the target market, said Mr Apisit.
This is because trucks have an acceptable loss ratio and the market has room for potential growth, supported by economic expansion, cross-border trade and public infrastructure investment projects, he said.
The auto insurance market is still a source of premium growth as new auto sales in 2017 grew by 13.4% year-on-year after four consecutive years of negative growth, said chief executive Panus Thiravanitkul.
Auto sales are expected to grow a further 3.4% to 900,000 units this year, said Mr Panus, citing data from Toyota Motor Corporation.
The company has also adopted an analytic tool to analyse customer data to better understand consumer behaviour and improve its insurance policies.
The company plans to integrate digital technology into its insurance business by setting up a department of innovation and digital technology, said Mr Apisit.
Digital technology will help provide better convenience in terms of filing insurance claims or making payments, he said, and the technology should also reduce employee errors.
BKI reported total premiums worth 15.9 billion baht last year, slightly down by 0.6% year-on-year.
Net profit stood at 2.4 billion baht, with earnings per share registered at 22.57.
