New CEO promises steady profitability for AIG Thailand
The new head of AIG Thailand Group vows to keep it consistently profitable and select insurance segments that can make the group grow faster, such as consumer lines.
AIG Thailand Group consists of New Hampshire Insurance Company’s branch and AIG Insurance (Thailand).
Tomi Latva-Kiskola, chief executive officer of New Hampshire Insurance Co and president of AIG Thailand Group, yesterday told a press briefing that Thailand was a key market and was getting back on the development track.
Many focuses can be revived and returned to rapid growth, he said.
The group is negotiating with financial institutions including credit-card companies to strengthen its distribution channels.
The group remains focused on commercial lines. It has a strong position in this market, but will look harder at segments that could help it grow faster, such as auto insurance.
The company will strongly promote the product after recently promoting two other consumer lines – personal accident and travel.
Auto insurance is a huge market here.
In past decades, AIG Thailand Group was growing at more than twice as the rate of gross domestic product. Its growth is in line with the non-life-insurance industry.
The company’s policy is not to unveil business targets, but under Latva-Kiskola’s management with the focus more on consumer insurance, gross premium income must grow at least as fast as the overall market.
Consumer lines account for half of total premium income of more than Bt5 billion. The other half is commercial insurance. The proportion is unchanged even though the company will become more active in consumer insurance, since Thailand is investing heavily in infrastructure projects
AIG Thailand Group has expertise in that area and has coverage available up to US$1.5 billion (Bt50.6 billion) per policy.
"We did not target the number of projects that we will penetrate but we will focus on renewals of existing customers and expanding new premiums from new projects," Latva-Kiskola said.
The company plans to offer cyber insurance once the Insurance Commission grants permission.
Overseas, cyber insurance is well known and AIG Group has introduced it in many countries.
In the digital age, businesses are likely to witness cyber-attacks, while small businesses in Thailand don’t have as many preventive measures to guard against such attacks as large businesses have.
Retail, hospitality and financial institutions are examples of businesses that are at risk of cyber-attacks.
Cyber protection will be added to commercial insurance lines.
Inorganic growth could help support a Thai unit and inorganic growth is in the nature of AIG Group. Latva-Kiskola mentioned the recent deals of AIG Group to acquire life-insurance companies in Britain.
"We are interested in buying if the opportunities come but doing M&A [mergers and acquisitions] cannot be revealed until the activity happens," he said.
