CIMB Thai Bank plans additional insurance products
CIMB Thai Bank will launch more bancassurance products next month to generate insurance premiums of Bt2.2 billion to Bt2.3 billion and fee income of more than Bt250 million.
Adisorn Sermchaiwong, senior executive vice president, said yesterday that the bank was ready to enter the market of selling policies fully through bank branches.
The bank has 500,000 retail customers but only 20,000 of them have its insurance policies, so it will offer a greater variety of products. This year, it plans to launch a health-insurance package.
Of the target for overall insurance premiums this year, Bt1.3 billion is for life insurance, up by 40 per cent from Bt900 million last year, and Bt800 million is for new policies.
Renewal rate
The renewal rate for life insurance is 85-90 per cent.
The first five months saw life insurance reach 4,400 policies with premiums of Bt230 million, compared with 2,400 policies with premiums of Bt230 million in the same period last year. The average premium per policy had been about Bt100,000. It now is Bt40,000.
About 80 per cent of customers for home loans apply for a mortgage-reducing term assurance account.
The value was Bt270 million to Bt290 million in the first five months.
The bank aims at Bt300 million to Bt400 billion.
