Pacific Cross sets sights on Asean

It says its financial health is strong, with a capital adequacy ratio of nearly 240 per cent in the third quarter of this year, and it targets gross premium income of Bt1 billion within five years.

Given worries about serious diseases and rising healthcare expenses, more people are buying health insurance, so this market is expanding rapidly.

With its deep experience in health insurance for more than 45 years, Pacific Cross and its forebears have been doing business in Thailand and neighbouring countries consistently.

Under the name Blue Cross Thailand, the company began offering health insurance in here in 1980. Bupa acquired its entire business that year. 

In 2001, the company returned to Thailand as a management service provider, Made-Sure Services Co, managing travel and health insurance for Nam Sin Insurance and LMG Insurance customers. 

After the company’s acquisition of Borirak Insurance in 2013, the Pacific Cross Health Insurance brand arrived in Thailand in September last year.

Tom Thomson, chief executive officer at Pacific Cross Health Insurance, said in an interview that the company had set out a business plan for the next five years (2016-2020), targeting growth in gross premium income of 40 per cent per year to reach Bt1 billion.

 

Five key plans 

In 2016, the company has five key business plans. 

The first involves launching three more service centres next year in Hat Yai, Phuket and Hua Hin. This year, the company will open its first service centre to provide its customers with better services and provide an opportunity to expand its new customer base in Pattaya, Chon Buri province in December. The aim is to find more foreign customers who work or retire in Thailand’s tourist destinations.

Forging business is its second plan, after its recent joint development with LCD Dental of a dental-insurance plan. 

Pacific Cross has opened an online system, as the third plan, to connect with 344 hospitals nationwide. Customers can easily check their insurance rights and protection limits through the website.

The fourth plan aims to have more experts in health insurance in Southeast Asia. The company is establishing a training centre to develop personnel and provide knowledge to insurance agencies and brokers. Training courses for insurance agencies and brokers will offer certificates. As the company expands in Thailand, Laos, Myanmar and Cambodia, it needs to deal with the lack of experts in this field.

Its fifth plan is to support social-responsibility activities. The company is supporting the Kluaynamthai Hospital Foundation through “Run for the King” this year and has teamed up with the Gift of Happiness Foundation to raise funds for student clothes and learning materials in border areas including Mae Sot in Tak province.

 

Targeting working people, foreigners

Thomson said that next year, the company aimed to increase its customer base, focusing on middle-class Thais over 40 years of age and capable of paying premiums for a variety of protection plans and fast service, as well as foreigners. The company is developing new types of insurance to satisfy these groups of customers.

The company is collaborating with insurance brokers and promoting its new online distribution channel. At present, its insurance policies are sold through agencies and brokers.

Thomson said that in its first year of penetrating the Thai market, the company had garnered 20,000 customers. Half of them are individuals and the rest organisations. Of the total, 60 per cent are Thais and the rest foreigners. About 70 per cent of premium income is from foreigners. 

“This year, the company targets total gross premiums of Bt280 million. In the previous 11 months, it booked Bt240 million in total gross premiums. The renewal rate is 80 per cent and claim rate is 60 per cent. It’s satisfactory,” he said.

Thomson said the company’s customers were 36-40 years old on average and could handle premiums of Bt20,000-Bt30,000 per year. 

Health insurance is new to Thais and it is necessary to educate them about policies, and how they offer healthcare flexibility without a heavy financial burden. 

 

Strong capital position

Piyapadh Vana-Ukrit, executive vice president for business development, said the capital adequacy ratio was 138.97 per cent in 2013 when it was Borirak Insurance. In 2014, the company bought out its business and continued increasing capital, and the current paid-up and registered capital is Bt400 million.

He said the capital adequacy ratio was at 271.98 per cent in 2014, 221.52 per cent in the first quarter of this year, 175.49 per cent in the second quarter and 239.76 per cent in the third, reflecting strong financial health and business commitment. 

Pacific Cross has denied a report in Krungthep Turakij that the company did not report its capital adequacy ratio. In fact, the company has reported all relevant information to the Office of the Insurance Commission and has no problem with the capital base, it says.

 

Focus on expertise

Piyapadh said the company has offices in Thailand, Hong Kong, the Philippines, Vietnam, Indonesia and Cambodia. Next year, it will expand into Myanmar, planning to cooperate with Myanmar Insurance through reinsurance. Pacific Cross is in the process of planning this business. It believes that Myanmar is the most attractive for investment now as purchasing power is rising.

He said the company’s products stand out with the most comprehensive packages in the market. The company provides protection of up to Bt50 million per disease. Protection is provided 24 hours a day across the world. One of its strengths is lifetime policy renewal. Customers who suffer a health emergency while travelling abroad can find hospitals in the company’s network worldwide.