Prudential pins hope on TBank

In nearly all countries in Asia, UK-based insurance company Prudential has been ranked in the top three. 

Its focus is now on Thailand, where it remains the 10th-ranked player. 

Through the acquisition of Thanachart Bank’s insurance business, Prudential hopes to move up the rankings in Thailand. Prudential Life Assurance (Thailand) is now expanding here through the Thai bank’s branch network, and more products will be launched to capture more local customers, Tidjane Thaim, CEO of Prudential Group, said yesterday.

“Our strategy is based on two simple measures – responding to customers’ needs and efficient distribution channels,” he said.

Thailand is among the upper middle-income countries in the World Bank’s ranking. The middle class in Thailand is growing along with demand for investment and asset protection.

The insurance industry here remains attractive as life insurance policies are only 1-2 per cent of gross domestic product (GDP), compared to 0.7 per cent in Vietnam and 1 per cent in Indonesia. This is low compared to average savings of 25 per cent of GDP in Thailand and Asia.

“Prudential will certainly enjoy phenomenal growth in Asia, and particularly in Thailand,” he said.

Despite the slowdown in Asia, there are still opportunities and positive developments. The disruption will be only for a short while.

The Chinese economy is not in as bad a shape as people worry about and the US economy is showing strong signs of recovery.

The situation in Europe is the only concern. The economy there will continue to be in a recession.

Emerging markets, particularly Asia, are the only growth area now.

“If you look at growth rates and where growth is going to be in the world, it can only be in the emerging markets. There are opportunities to invest at a great return,” he said.

After meeting with Deputy Prime Minister Kittiratt Na-Ranong, Thaim is certain that the government’s infrastructure investment and economic policies will boost the country’s productivity and efficiency.

The deal with TBank will greatly address the corporation’s weak points in Thailand.

Prudential has two distribution channels – agents and the bank. The partnership with TBank will increase accessibility to its customers.

Prudential provides training for its agents and staff at the bank so that they are equipped with knowledge in insurance products to best serve its customers.

With the right products and efficient distribution, Prudential will increase the corporation’s scope and scale at a fast pace, he added.

“We could have done better in Thailand,” said Barry Stowe, CEO of Prudential Corporation Asia.