Insurer MTL leads inroads into CLMV countries

The company has also formed a management team responsible for business expansion in Asean with an emphasis on the CLMV countries (Cambodia, Laos, Myanmar and Vietnam).
Last year, MTL opened a representative office in Yangon, becoming the first Thai life insurer in that country, with the hopes of cashing in on the mostly untapped market.
Sara Lamsam, president and chief executive officer of MTL, said that while Thailand was becoming an ageing society, the CLMV population was predominantly younger. In addition, the proportion of insured people in each of those countries’ populations is still very low, so there is high potential for future growth.
“The company has recruited highly experienced executives to focus on the Asean market. The company has to study details on how to establish our insurance services in accordance with the laws and regulations of each country,” Sara said.
He said that this year, MTL would continue to grow through a customer-centric strategy and multi-channel approaches to all customer segments. The company expects premium income to grow by at least 18 per cent this year compared with the estimated industry growth of 14 per cent.
MTL will design new products to suit more market sub-segments. The company will soon launch a policy called “Muang Thai Happy Civil Servants” specifically for government workers, while health-conscious customers are another target.
This year, MTL plans to open more than 10 customer-service centres in various communities, department stores and shopping centres. Customers can pay their insurance premiums, as well as apply for premium loans at the centres. Meanwhile, MTL plans to add 10,000 agents to its current complement of 26,000 nationwide.
Since the company announced a strategic plan to become a digital insurer last year, it is moving its digital platform forward in three dimensions: customers, strategic business partners, and employees. Smile Club members can now search conveniently for participating hospitals and redeem Smile Points, as well as other activities, via an application. MTL also encourages its agents to use these new digital tools.
Last year, MTL announced 25-per-cent year-on-year growth in premium income to more than Bt75.23 billion. The company enjoyed a 28-per-cent surge in new-business premiums to Bt35.28 billion and 22-per-cent growth in renewal premiums to Bt39.96 billion. Net profit increased by 13 per cent from 2013 to more than Bt6 billion.
Total assets also rose by 26 per cent to Bt240 billion, 95 per cent of them earning assets including equity instruments, bonds, property funds and overseas investments.
The bancassurance channel contributed the highest growth of 29 per cent in 2014, while direct premiums rose 23 per cent, 14 per cent via agents and 25 per cent by others. Last year was a significant year for bancassurance, thanks to MTL’s partners, especially Kasikornbank, more product segments and a disciplined sales team.
“For bank assurance, we don’t see it as just products on shelves for customers to choose, but we look for more segments in response to different customers’ needs and lifestyles,” Sara said.
He reasoned that despite an economic slowdown in 2014, the life-insurance industry retained favourable growth because consumers had a better understanding of the benefits of life protection, savings, investments, health consciousness and tax exemptions.