Muang Thai Insurance covers heavy trucks in run-up to AEC
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Muang Thai Insurance has expanded its coverage to heavy trucks to cash in on the rising trade activities in border provinces ahead of the Asean Economic Community (AEC).
MTI president Nualphan Lamsam said yesterday that few insurers covered heavy trucks, and the company saw growing fleets in border provinces as transport businesses get ready to benefit from the integrated market that kicks off in 2015.
Viriyah Insurance, Dhipaya Insurance and Syn Mun Kong Insurance offer coverage for such vehicles.
MTI started to offer insurance to transport and logistics businesses in the second quarter of this year, Nualphan said. It will talk with reinsurers that have expertise in this field to ensure renewal premiums and look for companies that have large fleets to ensure sustained premium income.
“The loss ratio from heavy trucks is higher than for general vehicles, so the company next year will prepare renewal premiums and reinsurers to serve corporate customers. Premiums from heavy trucks will be significant once the AEC is fully effective,” she said.
Motor insurance currently accounts for 45 per cent of MTI’s premiums. That proportion will be maintained after the company takes on the heavy-truck segment.
MTI posted gross premiums of Bt4.13 billion for the first half of this year and aims to draw additional premiums of Bt4.7 billion in the second half.
The company reported net profit of Bt452.14 million for the first half against a net loss of Bt630.9 million in the same period last year. That loss was mainly from compensation claims of Bt1.04 billion by flood-affected customers.
MTI last year reported a net loss of Bt862.45 million from the huge compensation from the flood disaster.
The company this year has improved its renewal rate, thereby decreasing its costs. The loss ratio improved to 50 per cent from 58 per cent last year.
Nualphan said that despite the prospect of slower vehicle sales in the remainder of this year after the end of the government’s first-car-buyer scheme, the outlook for non-life insurance growth was still 15-20 per cent to Bt200 billion from Bt160 billion last year.
MTI is among the insurers of Saha Farms, and was in charge of Bt37 million in fire-compensation claims. MTI entered talks with loss adjusters before paying the compensation to Saha Farms.
