Muang Thai lays out strategy to balance growth
As a fast-growing company, Muang Thai Life Assurance has drawn up a strategy to balance its business through agents and bancassurance services, expanding its base to include everyone from grass-roots customers to high-end clients.
The company says it is focusing on offering a variety of products to ensure that it serves every need.
Tougher competition both from insurance companies and banks’ affiliated insurers have prompted aggressive marketing strategies by all players. The aim to serve the needs of customers will mean insurers will act like financial institutions in the near future.
Sara Lamsam, president and chief executive officer of the company, said Muang Thai Life was studying in-depth its customers’ needs, analysing average age, status, and other details.
However, marketing channels are being focused on as the way to reach
policyholders more closely. Insurance agents are still the most important channel, while bancassurance allows people to acquire insurance and financial services under one roof. Moreover, telemarketing and TV cannot be ignored to help boost sales.
“We are competing in the market by providing satisfaction to customers through easy access to service anywhere they go, such as modern-trade or even convenience stores,” Sara said.
He said agents still played a key role in the life-insurance business, as they can serve customer needs directly. However, the bancassurance channel focuses on banks’ customer base.
Sara said banks had to coordinate with insurance companies to survey market demand and develop products that serve people’s needs.
Because of changing consumer lifestyles, people are thinking of investment for their long-term security. As a result, life-insurance companies have to prepare integrated services to serve the market trend. For instance, a variety of products have been developed, including unit links, single premiums, and short-term-coverage products, to ensure that the company captures high-end customers. In addition, the company has designed life-insurance coverage for the medium-income group and micro-insurance for grass-roots people.
Currently, life-insurance companies serve 25-26 per cent of population. They foresee that middle-class income and grass-roots people will drive business growth.
Sara said the company was also interested in cross-sales, encouraging agents to sell general insurance products. The company is looking into a training course to encourage agents to sell non-life products.
The company is also interested in increasing the number of specialised agents to boost sales of premium policies, for which they need to apply for licences, particularly unit links that provide life coverage together with investment plans. Currently, the company manages about 100 licensed agents.
The direct-sales channel is also growing, through which consumers can buy life coverage directly and conveniently.
“At present, it is not only insurers having to visit customers to persuade them buy our policies but also customers walking in to purchase directly,” Sara said.
