Allianz Ayudhya ups investment in direct-response TV to keep leadership
Allianz Ayudhya Assurance next year will double its investment to Bt160 million for promoting its life-insurance products via direct-response television (DRTV), which the company hopes will enable it to maintain leadership in the direct marketing channel.
The insurer, which has been the market leader in the direct marketing of life insurance for the past five years, aims to maintain its leadership this year by targeting gross premiums of Bt3.6 billion and new business of Bt1.5 billion.
At the end of the first half, the insurer had total premiums of Bt1.86 billion, representing year-on year growth of 20.8 per cent and giving it a market share of 27 per cent.
New business in the period amounted to Bt677 million, for 32-per-cent growth and a market share of 30 per cent, president and CEO Bryan Smith said yesterday.
"The second market leader in the direct marketing channel had new business of Bt570 million, which is close to ours. We will, therefore, reinforce the direct marketing channel by emphasising DRTV, as well as the newest channel – partners-in-branch sales," he said.
The company this year allocated Bt80 million to launch the "Soongwai Dai Koen Roi" campaign via DRTV, in a drive to tap more of the seniors’ market.
The new product is expected to drive premiums from DRTV to Bt100 million, after achieving Bt47.5 million in the first six months, he added.
"We plan to invest Bt150 million next year to promote insurance products among senior people via DRTV. DRTV is the fastest growth channel for life insurers to penetrate the market for seniors, as this category of consumers spends more time watching TV than other groups," said Smith.
The company introduced its insurance products via DRTV in 2011 to tap the mass market further, he said, adding that premiums from elderly customers represented only 1.5 per cent of total premiums.
DRTV has helped the company to cater better to mass customers, while it focuses on affluent customers through the agency and bancassurance channels, and on middle-class customers through telesales and partners-in-branch sales.
DRTV will also help assure continued market leadership in the direct marketing channel, he said.
Premiums from DRTV currently represent 10 per cent of total premiums from the direct marketing channel, said the company chief.
Premiums from direct marketing account for 23 per cent of premiums, with agency the main channel at 48 per cent, and bancassurance bringing in 25 per cent.
This premium breakdown is expected to remain unchanged, even though DRTV is the fastest-growing channel, as each channel has different target customer groups, he said.
