TQM Insurance Broker may go for SET listing

Founded as a family business 60 years ago and now the market leader, TQM Insurance Broker is thinking seriously about listing on the stock exchange, as it acknowledges this would support growth in the future.

Company president Unchalin Punnipa said TQM acknowledged that with premium income this year expected to approach Bt10 billion, it should think in terms of global standards and responsibility to all stakeholders.

Next year, the company targets premium income of Bt11 billion to Bt12 billion.

“We should move into the international standard of management, as many insurance companies have been upgraded to public companies. Brokers should think about this as well because [adhering to] international standards will create trust among the customers, who are among the stakeholders in the company’s view,” Unchalin said.

He added that complying with the standards necessary for listing on the Stock Exchange of Thailand would make TQM better placed to deal with its competition, while opening opportunities in Asean. 

If the company floats shares to the public through an initial public offering, Unchalin will remain the major shareholder.

Even though Asean will be a pot of gold for several businesses including insurance, the company has preferred tapping people in border provinces by using its branches near neighbouring countries and its satellite TV arm, he said.

He said the ageing society and rapid changing behaviour of people meant the company had to increase its focus on selling life and health insurance.

Motor insurance contributes 79 per cent of its total premium income but after focusing more on health and life insurance, that proportion should decline to 60 per cent.

“We formed a face-to-face team to sell life and health insurance last year because those products are more complicated than non-life insurance, which that can be offered through telesales or online channels,” Unchalin said.

He noted that amid the increased role of bancassurance and digital channels, customers could find the information they need to find the most suitable insurance plans for their situations, so a good Internet presence was essential. 

TQM has a customer base of 1 million, of whom 10,000 have purchased life insurance. He believes the company has a lot of room to grow in offering life insurance to its existing customers.