AACP products target policyholders nearing due date
Ayudhya Allianz CP Life (AACP) will concentrate on promoting new short-term life-insurance products to encourage existing policyholders to purchase more coverage after their policies reach their due date.
Another product has been designed to allow policyholders to use their life-insurance premiums for tax exemptions to a maximum of Bt200,000.
The two new policies will be sold through agents and are scheduled to launch in the third and fourth quarters of this year.
"We have to launch new policies during this period as people prefer purchasing life insurance at this point to enjoy the tax deduction," said Stephen Appleyard, president and chief executive officer of the company.
The company is confident of achieving incremental growth with targeted first-year premiums of Bt6 billion and total premiums of Bt24 billion through the launch of the two new products.
The company also reported strong performance in the first half, as first-year premiums jumped by 32 per cent to Bt2.27 billion, bringing total premiums to Bt9.15 billion, up by 17 per cent.
"The company is heading in the right direction and ready to strengthen all distribution channels to achieve sustainable growth," said Appleyard, adding that AACP's growth in first-year premiums was three times that of the overall market.
The outstanding performance resulted in the company enjoying a 7-per-cent increase in total assets to Bt104 billion.
In the second half of this year, the company continues to boost sales through every distribution channel.
Other marketing strategies have also been introduced, such as joining forces with the Bank of Ayudhya to launch a product for bancassurance as well as a direct-marketing channel.
Appleyard said the company would also launch a mortgage-reducing term assurance (MRTA) product. to prepare for the increasing mortgage loan, while the lower premium of MRTA is also help widen the market, which this benefit its MRTA as well.
The company will increase its marketing budget on free TV after early allocating money for advertising on cable television.
"We will aggressively market our products through free TV from the fourth quarter through next year. Moreover, we will develop new marketing platforms for capturing smart-phone users," he said.
