Sri Ayudhya General Insurance goes digital way
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SRI Ayudhya General Insurance (SAGI) has said it will not open more branches, preferring to focus instead on serving more customers via online channels.
Rowan D’Arcy, its president and chief executive, said SAGI had to change its way of doing business given the rapid changes in technology – or face extinction.
“We remain a traditional insurance company but in internal processes, we have already revamped to go the digital way,” he said. “We have no need to open more physical branches because the digital channel can access customers.
“What we are doing is similar to what banks did. The essential thing of opening bank branches has been reduced because customers can use financial services anytime, anywhere.”
SAGI – 66 years old in October – has 18 branches nationwide.
It has laid out a three-year digital strategy for the years 2016 to 2018 based on the new digital era.
D’Arcy said the company had had a “soft launch” of mysagi.com – a websiteto serve as a direct channel to tap individual customers, which partners and agents can also use as a tool.
He said the digital plan also came in response to the need to deal with future competition and the possibility its competitors might change.
He said SAGI recently invited the founder of Skootar Beyond, an online messenger start-up, to brief the firm’s employees on how to navigate the digital era and this had motivated employees to adjust to deal with the changing situation and competition.
He said this year also marked the first time the company staffing level had been reduced, with manpower efficiency the goal and new employees added when expertise is needed.
“We will train the existing staff to be professional in categories that we need. Our number of employees now is 400,” he said.
Under the digital strategy, D’Arcy believes the company can double its premium portfolio from the current 10 per cent of its total premiums through direct selling, with the new website strengthening that selling channel.
SAGI offers 30 motor insurance and personal insurance policies via its website.
D’Arcy said SAGI planned to soon offer health insurance after establishing a hospital network |and receiving permission from the Office of Insurance Commission regarding a third party to be in charge of paying medical claims to customers.
Under the policy, he said customers would not be hit with expenses while receiving medical treatment.
“We hope this website will generate premiums of no less than Bt200 million a year,” he said.
Bancassurance is SAGI’s major premium contributor at 45 per cent, followed by agents (30 per cent) and brokers (15 per cent).
