Dhipaya seeks partnership with banks

“We aim to join with medium-sized banks starting with personal accident policies before expanding to other products,” managing director Somporn Suebthawilkul said.
Dhipaya’s products are now sold through the Government Savings Bank, but the company wants to expand its marketing channels to commercial banks because of their larger networks of branches, he said.
The company will next year double its agents to 4,000, as the focus will be on retail customers especially for accident, fire and health insurance to cash in on the rising demand from customers who experienced the floods.
It plans to drive its retail business to 50 per cent of the total in three years from 20 per cent |currently.
It sees room to grow in the home-insurance market especially for people who have paid off their mortgages, who are 70 per cent of all home-owners.
“People who have no housing debt burden with banks are our target.
“We will aggressively persuade them to buy fire insurance,” Somporn said.
The flooding opened up the opportunity to develop a flood-protection policy as an option for non-first-class auto insurance.
Vehicle owners who want to buy second- or third-class auto insurance can buy the policy for only flood protection.
Only first-class motor insurance covers flood damage, however, and the premiums are more than 50 per cent higher than for third class.
The company targets total premiums to grow more than 40 per cent next year from Bt14 billion this year. Without the flood effect, premiums this year should have been higher than Bt14 billion.
Because of the floods, profit this year might not reach Bt700 million as expected, Somporn said.
Dhipaya Insurance recently acquired 20 per cent of Siam Life Insurance to expand its life-insurance business.
Siam Life Insurance will now be known as Dhipaya Life Assurance.