Thai life insurance demonstrates stability.
Mr. Chai Chaiyawan, Director and Chief Executive Officer of Thai Life Insurance Public Company Limited (Thai Life Insurance, TLI), announced that Thai Life Insurance has defined a Business Purpose in doing business as every answer of life insurance, health insurance, and personal financial planning or Life Solutions Provider to support the company's goal of being a sustainable life insurance company.
In terms of the business target for 2022, the company has set an increase in the first year's premium as a goal. by focusing on expanding the market for both existing customers through the sale of a second policy, including sales for the entire family, and new customer groups that focus on expanding the market to high-end customers or the High Net Worth group, as well as working-age groups
"The Company aims to improve the efficiency of business operations in all aspects, whether through the development of products that meet the needs of individual customers or personalization in every stage of life (Life Stage), every rhythm of life (Life Event), and every lifestyle (Lifestyle), development of services to be more than life insurance, including the development of various distribution channels such as Upskill - Reskill for life insurance agents. Combined with digitally integrated workflow improvement through the adoption of new technology from demand analysis to the conclusion of the sale issuing policy and payment, which is an End-to-End working process" Mr. Chai explained.
At the same time, the company encourages sales agents to use Digital Tools to improve their work capabilities, whether it's through the MDA Plus application group, which is a group of applications that support the work of life insurance agents, including sales, recruiting teams, customer service, and team management, or encouraging insureds to use the Thai Life Insurance application, which, in addition to viewing the insurance information that was purchased as well as to doing the various transactions The company intends to create a digital lifestyle platform that will benefit clients depending on their preferences. (Interest-based Platform) to help Thai life insurance companies acquire the trust of the customers.
As for the operating results in 2021, the company has first-year premiums of 10,270.65 million-baht, Renewal premiums of 72,747.72 million baht, a retention rate of 88.6%, single premiums of 7,430.64 million baht, and the Company’s gross written premium was THB 90,451 million, Baht.
"According to the Company's new premium figures, "The product group with the greatest new premium received in 2021, was life insurance in the savings category which is equivalent to 55.1 percent of all first-year premiums assessed on a yearly basis. While the additional contract, whole life insurance, and investment insurance accounted for 13.6 percent, 12.3 percent, and 7.3 percent, respectively, of all first-year premiums computed yearly. However, it was discovered that premiums for investment-linked life insurance and additional health insurance contracts increased in comparison to 2020, in line with the demand of consumers who began to look for alternatives to saving money and invest to spread the risk, including looking for health insurance and alleviating the burden of medical expenses," Mr. Chai said
Consumer demand trends resulted in Thai Life Insurance establishing a target for the growth of premium income from life protection products in the year 2022. with a focus on selling life insurance products with investment, savings products that participate in dividends or Participating Product (PAR-Product), and many other contracts.
Although the outbreak of COVID-19 will have an impact on some non-life insurance businesses in 2021, such a circumstance had no effect on the Company's claim rate significantly because the company has no non-life insurance products in the form of “find, pay, end”(1), the majority of claims are covered under health insurance contracts. by making COVID-19-related claims that this typically comes from customers who purchase additional health insurance and income compensation contracts while hospitalized., Mr. Chai added
However, the increase in the number of claims was offset in certain cases by a decrease in medical claims. Because people avoided traveling to the hospital during the COVID-19 outbreak, the loss ratio for medical expenses fell from 5.8 percent in 2019 to 5 percent. 5.1 In 2021, the payment of benefits and expenses under insurance contracts associated with COVID-19 amounted to 1.6 million baht and 899.6 million baht, respectively, or 0.04 percent and 19.47 percent of overall medical claims and expenses during that period, respectively.
The company's financial situation is still stable. As of December 31, 2021, the Capital Adequacy Ratio (CAR) was 355.22%, showing that the Company is able to manage effectively.
Thai Life Insurance focuses on stable business operations, prudent risk management, good corporate governance, and the development of working efficiency, and is accessible to all changes, including the goal of strengthening Thai society to be strong and sustainable by carrying out activities that improve the quality of life of people in society in accordance with the Sustainable Development Goals: SDGs. Mr Chai said