Sompo Japan expects to focus on retail customers through its motor insurance

Shigeo Saito, president of Sompo Japan, said personal insurance at present accounted for only 10 per cent as the company in the past had laid emphasis on corporate insurance. Under the three-year plan, it wants to increase premiums from personal insurance to 30 per cent this year by actively promoting motor insurance.

Although vehicle sales in Thailand are seeing slower growth, the company believes motor insurance offers potential for growth in the non-life insurance industry. Saito said motor insurance would help the company expand its customer base in the retail segment.

Motor insurance at present provides 18 per cent of the firm’s total premium income. But after focusing more on retail customers and using motor insurance as a key product, the company expects its share of income from this segment to rise to 60 per cent by 2017.

"We will cooperate with Japanese automakers and branches of Bank of Ayudhya to promote our motor-insurance products. This cooperation will help us achieve our goal," he said.

By 2017, total premium income is targeted to reach Bt7.5 billion, compared with the expected Bt2.8 billion this year. Last year, Sompo Japan received total premium income of Bt2.4 billion."We hope to rank in the top 10 in non-life insurance in Thailand by the end of 2017," he said.

Duanden Choenchitsiri, executive vice president, added that as a first step the company would promote its brand and motor insurance in the mass market where motor insurance makes up 60 per cent of total non-life premium income. The company believes it can grow in this segment if it strongly promotes its products. It will launch new TV ads during the remainder of this year.

The company is also communicating with customers via digital marketing to build brand awareness. It plans to increase the number of branches from eight to 10 this year to prepare for growth in the next three years.