Bangkok Life Assurance (BLA) wants to see a 25% growth in premiums from unit-linked insurance plans over the next five years, as it expects negative growth for traditional insurance products as consumer behaviour changes.
BLA aims to increase its total premiums this year to 36 billion baht, or 7% growth from the previous year, with 18 billion baht received in the first six months.
Chone Sophonpanich, president and chief executive of BLA, said the pandemic has slowed the economy and heavily impacted the operations of businesses in most industries, including the insurance industry.
He said the company itself has been challenged by the situation and compelled to adjust every aspect of its operations, including developing new products such as unit-linked life insurance products to attract customers.
"The unit-linked market is growing well. In 2020, the total premiums received from unit-linked products amounted to 10 billion baht, up 8 billion baht in five years from 3 billion baht in 2015," said Mr Chone.
To capitalise on the growing trend, BLA on Monday launched two new unit-linked products, namely Bangkok Life Premier Link with regular premium payment, and Bangkok Life Wealth Link with single premium payment.
The two new insurance plans will be accompanied by before- and after-sales services that are catered to customers' every need in every distribution channel and cover the company's whole range of product segments from health and savings to retirement and estate planning, Mr Chone said.
Jakkrapong Sangkeaw, head of the actuarial division at BLA, said the two unit-linked insurance plans completed the financial product range in the company's pipeline.
Bangkok Life Premier Link is a regular premium life insurance product combined with an investment that the company described as helping the insured plan for and fulfil every life goal with one single policy. This product is best suited for a customer who is starting a family and requires financial planning and risk management, Mr Jakkrapong said.
He said the plan's biggest draw is its flexibility, as it can be customised to match policyholders' lifestyles. The premium, sum insured, and investment proportion can be adjusted in accordance with the financial situation in the customer's life stages. It also increases the customer's opportunity to receive higher returns on investments in mutual funds.
The investment portfolio can be adapted to fit customers' risk profiles, he said.
The Bangkok Life Wealth Link plan for life's security and transferable legacy is suitable for an entrepreneur or employee with middle to high income who plans to merge life insurance and investment with a single premium payment. The insurable age is newborn to 70 years, with a coverage period until the age of 99.
The plan's benefits include life protection of up to 150% of the single premium that will help create wealth for loved ones in the family or accumulate wealth for oneself since there is no administration fee involved, allowing almost the entire premium amount to be used for investment.
The policyholder will have more opportunities to gain higher returns on mutual fund investments with the portfolio, which can be adapted to fit the customers' risk profile.
The customer can access more investment opportunities by adding an extra fund with an ad-hoc top-up premium. An administration fee and the cost of insurance can also be used for a tax deduction as per the terms and conditions of the insurance, he said.
The product lets anyone plan for their life security and long-term wealth and gives them the management freedom to make adjustments in accordance with their lifestyle, plus an opportunity for higher returns through investment in various quality mutual funds, said Mr Jakkrapong.
