Carrier liability insurance to play a crucial

Thailand is the geographical centre of Asean. China and Japan are seriously interested in joining the government in constructing dual-track railroads to transport goods to Europe, the Middle East and Asean.

Arnon Opaspimontum, deputy managing director, said yesterday that the heavy shipping traffic in the Strait of Malacca – the main channel for transporting goods from Asia to the EU and the Middle East – makes China and several countries in Asia look for new transportation routes. Dual-track railways from southern China to Asean via Thailand are the right solution.

The government believes the country should take advantage of the upcoming flows of trade by upgrading its logistics by both sea and land.

Demand for carrier liability insurance from logistics operators will increase if the country can become a trading nation. Several insurance companies will have to upgrade their liability insurance to cope with the trend.

Viriyah has leveraged its expertise in motor insurance for non-motor insurance. Carrier liability is a part of non-motor insurance and has contributed to premium growth of the company.

The increasing role of border trade has also driven carrier liability premiums to Bt200 million from Bt10 million four or five years ago.

Carrier liability insurance is a segment of marine insurance. In the first five months, the company saw carrier liability insurance advancing by 10.4 per cent year on year, while non-motor insurance expanded by 2 per cent to Bt1.01 billion.

The company targets non-motor premiums rising 5-10 per cent to Bt3 billion this year after dropping 5 per cent last year due mainly to the political uncertainty and economic slowdown.

Non-motor accounts for 9 per cent of Viriyah’s total premiums and is expected to increase beyond 10 per cent in the future as consumers and businesses become more aware of liability insurance.

The company will focus on six non-motor products: carrier liability; property; motorcycle theft; financial and bail bond; personal accident; and health.

Thanks to its strong experience in motor insurance, the company could design those six products to be similar to what it did in motor insurance.

The non-life insurance industry is expected to be no more than 5 per cent ahead of last year due to the slump in new car sales. In the first four months, premiums of this industry edged up 1.2 per cent, while non-motor premiums contracted.

The company believes the insurance industry will fare better in the second half after the government starts stimulating the economy through injections of money.