More channel savings into life insurance
Thais are saving more through life-insurance policies, with total premiums gushing 16.4 per cent to Bt278 billion in the first nine months of this year.
"The industry has demonstrated continued growth, thanks to the variety of products that meet consumers’ demands as well as greater advertising and educational campaigns," Sara Lamsam, president of the Thai Life Assurance Association, said yesterday.
Of total premiums, Bt89 billion came from 3.8 million new policies. While 2.17 million policies are for individual protection, 97,176 policies are for industrial protection and 4,251 for group protection. New-policy premiums showed a 20.3-per-cent increase year on year.
Agents originated Bt157 billion or 56.4 per cent of the premiums, bancassurance Bt104 billion or 37.4 per cent, phone sales Bt8.9 billion or 3.2 per cent and other sales channels Bt7.8 billion or 3 per cent.
Siam Commercial Bank and its subsidiary SCB Life Assurance also launched a life-insurance product in its Flexi line, allowing customers to design their own financial plan.
creating wealth
Smith Banomyong, an executive vice president of the bank, said research on fixed-income persons and businesses owners found that they were giving more emphasis to financial planning and creating wealth through investment in several financial products such as mutual funds and life insurance with a savings feature.
However, those customers want flexibility in their investment and lifestyle.
The new product was developed to serve their requirements.
Policyholders can select the savings and protection periods and the premium while enjoying the high return. The bank will also give an annual return of 5 per cent of the sum insured to policyholders.
This will attract customers and could drive premiums this year to the target of Bt32 billion, Smith said.
Vipon Vorasowharid, managing director of SCB Life Assurance, said the new product was a good choice for those who wanted freedom in financial planning.
It offers three periods of savings – five, 10 and 15 years – and three periods of protection – 10, 15 and 20 years. Customers can select the amount of insurance premiums in line with the savings and protection periods.
Policyholders also can deduct the full cost of insurance of Bt100,000 per year.
Smith said the product was the first step of the bank, which plans to launch additional insurance products in the Flexi segment.
