TMB targets first-jobbers with new life insurance policy
TMB Bank has launched a new life-insurance savings policy that aims to tap first-jobbers who can afford premiums of Bt12,000 per year - a move it hopes will add a substantial number of new customers to its bancassurance portfolio and help sustain its prem
TMB Bank has launched a new life-insurance savings policy that aims to tap first-jobbers who can afford premiums of Bt12,000 per year – a move it hopes will add a substantial number of new customers to its bancassurance portfolio and help sustain its premium income for the rest of the year.
Kamolwan Imruthaicharoenchok, team head of investment products, said new banking customers were the priority target for TMB’s bancassurance channel as it wants to tap younger customers so it can cross-sell products to them.
She said first-jobbers preferred low premiums in order to minimise their financial burdens.
The bank has teamed with FWD Life Insurance to design the new life-insurance saving policy, Life Saver 15/9.
Policyholders who choose to pay the monthly Bt1,000 premium instead of the lump sum Bt12,000 are required to pay interest.
At the end of the 15-year contract, the policyholder gets Bt100,000 back.
“With the low premium and the cash back, we expect 20,000 policies during the last three months of this year,” Kamolwan said. “Normally, we would sell around 18,000 life-insurance policies” for the same period.
She said that although the bank might miss its target of 40-per-cent growth in new insurance-premium income this year because of a drop in motor-insurance revenue having an impact on non-life income, recording Bt2.7 billion in premium income in the first nine months of 2015 was an acceptable figure.
The figure marked year-on-year growth of 37 per cent, she said.
Kamolwan said the bank expected its premium income from new policies this year to reach Bt4 billion, a rise of 37 per cent from last year, with new policies and the tax season forecast to result in revenue growth of 30 per cent this year.
She said the growth in premium income this year was mainly the result of TMB’s life-insurance policies, which contributed up to 85 per cent of the total.
The bank aims to grow this segment because it believes that is possible in large part because of many first-jobbers looking to save money.
