BLA plans insurance sales in Cambodia
BANGKOK Life Assurance (BLA) plans to sell whole life insurance and savings insurance to Cambodian clients through its joint-venture company in that country next year.
Komkai Thusaranon, acting president of BLA, said yesterday that the company had received a life-insurance licence from the Cambodian authorities in the first half of this year. BLA holds a 52-per-cent stake in a joint venture named Bangkok Life Assurance (Cambodia), with the remainder held by the local partners.
The JV has registered capital of US$7 million (Bt242 million).
“We are in the process of recruiting local staff, including agents,” she said.
Komkai said the agency channel was the best one to communicate with people and make them understand their insurance needs. Later on, the company will develop other sales channels such as bancassurance.
She said Cambodians had the same insurance-product requirements as Thais, but in the first stage, its Cambodian subsidiary will offer only whole life and savings insurance plans.
She said BLA did not expect its Cambodian venture to break even within a year or two, but Cambodia has provided a great opportunity for the company in the medium term. Once the Cambodian business is settled in, BLA plans to expand its footprint into other neighbouring countries.
Muang Thai Life Assurance started operating a life-insurance business in Cambodia in April through Sovannaphum Life Assurance, a joint venture with Canadia Bank.
In Thailand, BLA ranks sixth in terms of premium income. The company is expected to name a new president soon after Chone Sophonpanich resigned from the company early this year.
Komkai said the company had adjusted its strategy by giving importance to long-term insurance plans such as annuity and protection insurance, including health policies, in order to manage its reserves and sustain returns amid the downturn in interest rates.
BLA will embrace protection and long-term insurance as key products to drive growth.
The company recently lowered its target for first-year premium income by between Bt7 billion and Bt8 billion from the previous target of Bt22 billion. It now targets Bt15 billion to Bt16 billion in FYP income.
The company set high reserves in the first quarter, resulting in a net loss of Bt6.8 billion. After adjusting its product focus to long-term insurance to manage its reserves, BLA was able to book a net profit in the second quarter of Bt9.39 billion.
