BAY plans all-in-one policy
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Bank of Ayudhya plans to offer more all-in-one insurance packages designed to meet a range of customer requirements and reflect the new reality after the recent massive flood.
The bank projects its gross bancassurance premiums to grow by 30-40 per cent this year compared with 20 per cent last year, Kris Chantanotoke, executive vice president, said yesterday.
Its premiums last year would have increased 30 per cent to Bt6 billion but for the flood.
The natural disaster had an impact on people’s perspectives. Those who had never bought insurance before started looking at policies both life and non-life.
The lowering of interest rates and deposit guarantees is expected to boost interest in endowment life insurance because it is a product that focuses on giving higher returns.
The bank will develop a package for depositors who want a guaranteed return from endowment in savings and fixed deposits.
The package will be offered with personal accident or health insurance depending on customer requirements. The package will ensure that customers will get greater value. The flexibility in selecting insurance to match customer requirements would help attract new customers.
Life insurance accounts for 70 per cent of BAY’s premiums and 70 per cent of life insurance is endowment insurance. Non-life insurance accounts for the other 30 per cent of premiums.
All-risk policies covering floods cannot be issued at present because insurers have to wait for a response from reinsurers.
The trend in non-life insurance might be to require a deductible and set a maximum on coverage to reflect the higher catastrophe risk for Thailand.
Flood insurance might be offered separately as an option.
Renewal premiums are expected to rise by 20-50 per cent, while new customers might be charged more than that.
Some non-life companies might fold from the flood, and mergers of insurers will be seen, he added.
