AACP aims to boost insurance sales by agents and via DRTV

The company plans to grow agent sales by 40 per cent to Bt16 billion and those through DRTV by 23 per cent to Bt3.3 billion this year. Meanwhile, the bancassurance channel that the company jointly operates with Bank of Ayudhya is expected to surge by 20 per cent to Bt4.7 billion. These three main marketing channels should help the company achieve its target of Bt23 billion in premiums this year.

"Forty-per-cent growth is a massive jump for us," said Bryan Smith, newly appointed president and chief executive officer of AACP.

To ensure growth in agent sales, the company has not increased their total number from the current 14,000 but plans to boost their activity to 3,570 sales per month, compared with 3,100 currently.

Smith said yesterday that quality of service was still the focus of the company. AACP has won recognition as the best operation among parent company Allianz’ network worldwide. The company will also recruit more quality agents and proceed with internal human-resource-development training courses.

DRTV is a form of advertising that asks consumers to respond directly to the company via telephone, a website or some other method. With experience in this medium from Japan, South Korea and Australia, Smith plans to bolster sales via this channel after gaining good feedback from a test run on cable television last year. AACP also plans to launch an advertising campaign through every free television channel.

"Thais are ready for this business channel, which is growing very fast," Smith said.

He pointed out that the telemarketing channel was stagnant as customer can be reluctant to talk with staff on the phone.

The company yesterday reported its operating result for the first nine months of last year. Gross written premiums rose 16 per cent to Bt14.67 billion and achieved Bt107.51 billion in total assets. Of total premiums, new business accounted for Bt3.41 billion, up by 10 per cent. In addition, sales via direct marketing grew significantly by 23 per cent, via bancassurance by 19 per cent, through agents by 9 per cent and group insurance by 8 per cent.

This year, of total sales of Bt23 billion, first-year premiums are expected to account for Bt5 billion. Of this segment, the contribution from agents will account for Bt3 billion, bancassurance for Bt1 billion and direct marketing the rest. The company aims to maintain its No 1 position in direct marketing.

Smith accepted that the severe flooding last year had hit AACP’s performance in October and November. However, demand grew strongly in December, though the company has not finalised the figures yet.

"In the floods’ aftermath, a lot of confidence has already returned as people have focused more on security of life as well as health insurance."