AIG to launch Thailand’s first cyber insurance policy
AIG Thailand Group will this quarter launch the country’s first cyber insurance policy, aimed at corporations in the telecommunication, banking, hospital and hotel industries, as they have big data that should be protected from online attacks.
Policyholders will not only be covered for damages due to hackers, but also for suits by third |parties, country manager Tomi LatvaKiskola said yesterday.
Cyber insurance is expected |to get good feedback from Thai companies.
Unlike common policies, premiums will range widely, depending on the sum insured and liability protection.
Training on this novel product will be given to agents and brokers at AIG Academy.
The agency channel is key for the company because agents can educate customers on the complex features of the policy.
Consumers looking for insurance via online channels are keen on pricing, but AIG positions itself as the insurer offering the most value.
The company says pricing is |not its way of doing business. It will offer additional protection to customers instead.
Cyber insurance is part of the commercial line that now contributes 50 per cent of the company’s premium income, up from 55 per cent in the past, attributed to the group’s drive to build its brand and refresh its products among consumers.
In the consumer market, AIG is the leader in outbound travel insurance and is building motor insurance by refreshing its 2+ and 3+ vehicle policies.
The easy-to-explain features of motor insurance will help agents to offer the products to customers.
The first half saw impressive growth in the company’s premium income from motor insurance, it says.
The company has formed three teams to handle claims, based on their level.
Express claims will be approved in only one day, while the expert team will oversee complex and major claims, as some cases will have to be involved with the legal process.
About 70 per cent of claims are express cases.
The company plans to set up a “key performance garage” system by selecting authorised garages to accept claims from its customers.
The garages can act on claims by themselves if the repair cost runs from Bt5,000-Bt8,000. The Bt5,000 level represents 40 per cent of auto-repair cases.
However, the company aims to raise the repair limit to Bt10,000-Bt20,000 for some garages.
There are 320 contracted garages, of which 20 will start this year. By next year, half of its contracted garages will be authorised to accept claims.
Motor insurance accounts for 12-13 per cent of its total premium income.
AIG says it will grow in areas where it can compete because it has realised that it cannot be the leader in all segments.
Motor insurance is the segment that AIG wants to grow in but it must select which areas to focus on, such as customers in Bangkok, Latva-Kiskola said.
