SCB Life aims to be among the top-three Insurer's recent growth well above market average
SCB Life Assurance aims to move up from fifth place now into the country's top-three life insurers in 2014 while protecting its lead in the key bancassurance market.
“The company has experienced sharp growth of more than 30 per cent in the past several years, beyond the market average of 5 per cent. This has convinced us to become one of the country’s top-three life insurers in the next three-year plan,” Vipon Vorasowharid, managing director, said last week.
The goal is to achieve total sales of more than Bt55 billion by 2014, he said.
The company is also further strengthening growth of agent sales and special markets, as well as investing in a new portfolio.
The company’s total premiums are targeted to grow by 21 per cent to Bt36.64 billion, while new business is expected to expand by 26 per cent to Bt15.20 billion this year.
Last year, SCB Life’s share in the life-insurance industry was 9.2 per cent, up from 8.3 per cent in 2010. The firm ranks third in first-year premiums with a 11.58-per-cent share.
Last year, SCB Life reported solid performance with total premiums up 30 per cent to Bt30.30 billion. First-year premiums alone were Bt12.47 billion. SCB Life will aggressively strengthen multi-distribution channel efficiency, emphasising bancassurance, agent sales and telemarketing.
Bancassurance is the strongest sales unit and contributes about 80 per cent of the company’s sales. Bancassurace sales are expected to rise by 28 per cent this year. The company will expand its bancassurance customer base in all segments – retail, corporate and SME.
The firm will continue to drive growth of non-bank channels through a special market business group in order to balance the portfolio and ensure sustainable growth. It will boost sales in non-bank channels through new partners like groups, Tesco Lotus and cooperatives after successfully achieving strong growth of 90 per cent last year in this channel.
Sales through Tesco Lotus are expected to jump to Bt360 million this year from Bt107 million last year. The firm will focus its investment more on equity and property funds this year, from relying mainly on government and corporate bonds.
Initially about 7.5 per cent of the company’s investment will go to equity and property funds, with the target of about 4.9-5 per cent for return on investment this year. SCB Life will also consider investing more in overseas markets in the near future as offshore investment currently makes up less than 1 per cent of the investment portfolio.
