Motor insurance to get pride of place in Muang Thai portfolio

In the global non-life insurance industry, motor insurance is regarded a major part of the portfolio, and at MTI it accounts for 49 per cent of total premium income. It needs to keep this kind of proportion, at half of total premium income, as international insurers do, said Nualphan Lamsam, president and chief executive officer.

The company has reinforced its motor-insurance business by appointing a new executive, Pannee Pitikultang from Syn Mun Kong Insurance.

The company also announced 2015 as the "year of service", as it tries to cope with intense competition, and focuses on service and brand awareness.

The company recently launched a claim service for its motor-insurance customers through smartphones and tablets.

Premiums from motor insurance this year are targeted to account for 48 per cent of total premium income, down slightly from 49 per cent in 2014.

MTI plans to expand its motor-insurance channel to auto dealers upcountry, including those selling European car brands. In motor insurance, MTI ranked sixth last year, improving from lower down in the top 10 in the past few years.

In terms of total premium income, MTI moved up from fifth to fourth in 2014 with Bt10.23 billion, growth of 15.1 per cent year on year. She said the company might not move into the top three because its market share was well behind third-placed Bangkok Insurance. "What we need to do is maintain fourth place and the [current] bottom line," she said. Last year, MTI recorded net profit of Bt856 million, up 10.9 per cent from 2013.

Nualphan said the company targeted premium income this year of Bt11.98 billion, or 17-per-cent growth year on year.

In bancassurance, the main channel for MTI, it will focus more on selling personal-line products such as personal accident and motor insurance in the provinces in line with the strategy of its partner bank Kasikornbank, which is expanding branches upcountry.