Thai hospital owner proposes joint investment plan to Tokio Marine
TOKIO Marine Life Insurance (Thailand) has been approached by a Thai hospital owner to invest jointly in the nursing-home business for high-end elderly people in Thailand.
“We have to propose this issue to Tokio Marine Holdings for consideration, but nursing homes for ageing people in Thailand have a good chance to be seen in the next five years because Thailand will become an ageing society soon,” said Somphot Keitkraival, deputy chief executive officer of Tokio Marine (Thailand).
Tokio Marine Holdings in Japan has expertise in the nursing-home business through its wholly owned subsidiary Tokio Marine Nichido Samuel, which operates 11 for-profit homes for the elderly with nursing care provided under the Hyldemoer and Huette brands in Tokyo, Kanagawa, Nagano and Kyoto.
The Thai hospital owner requires Tokio Marine’s logo for nursing homes. It wants to set up the nursing-home business to tap both rich Thais and Japanese who decide to live in Thailand when they retire.
Living after retirement has become a new risk for Thais who haven’t made preparations, while the government allowance for the elderly is not enough for a long life. The company has promoted pension insurance for the past five years to help Thais become aware of how to save enough money for their retirement. Pension policies account for 65 per cent of its total premium income – regarded as a high percentage among life insurers in Thailand.
Kurosu Atsuo, president of Tokio Marine Nichido Samuel, said older people required nursing care. Even though the government offers pension and compulsory coverage to Japanese citizens, the changing structure of the population in Japan makes older people think seriously about how they can live after retirement.
Nursing homes have become a choice for older people with enough money for their retirement. In Japan, this business generates annual profits of 204.3 billion yen (Bt61 billion) on 750.3 billion yen of sales. Tokio Marine Nichido Samuel ranks 21st in market share and 42nd in the number of nursing homes.
Thailand is becoming an ageing country like Japan, so the Thai government should seek measures to respond to the large number of elderly people here, the company says.
For Samuel’s nursing homes, the elderly must pay a fee of Bt10 million to Bt75 million based on the nursing care provided. Older people unable to take care of themselves will pay more than those able to take care of themselves. Each customer will have additional monthly payments of Bt100,000.
The company might let property investors run the buildings while it will run the nursing-care service.
The company is planning to do marketing with Tokio Marine & Nichido Life Insurance Co, commonly known as Anshin Life (AL), to cater to AL customers who are mature policyholders.
In terms of premiums, the life-insurance industry in Japan has not seen any growth for 20 years because the long life of Japanese has reduced the need for death coverage. Policyholders have paid more attention to other protection products instead of whole life insurance. Third-sector (medical and health) products in the life insurance market in Japan climbed to 18.8 per cent of new premiums in 2013.
Life insurers have been more aggressive in targeting long-term care and disability products as new growth areas and AL also has focused more on the third sector.
The Japanese government added the long-term care insurance system to certified insured who require long-term care for toilets and meals.
The government will pay 50 per cent of long-term care insurance. People aged 40-60 years will shoulder 29 per cent of premiums and those 65 and above will carry 21 per cent of premiums. The premiums will be deducted from the monthly income of Japanese workers.
