Viriyah Insurance Charts 'Beyond Protection is Value' Strategy to Navigate Economic Turbulence
Third-generation MD Amorn Thongthew pivots 78-year-old insurer towards service excellence and innovation amid Thailand's structural challenges
- Viriyah Insurance has launched a "Beyond Protection is Value" strategy to navigate economic turbulence by focusing on service excellence and customer value instead of price competition.
- The strategy is built on three pillars: enhancing service quality through technology, expanding strategic partnerships (particularly in the EV sector), and investing in human capital development.
- A key part of the strategy involves insuring electric vehicles, even at an initial loss, viewing it as a social responsibility and a long-term investment.
- The company is leveraging technology and AI as tools to supplement its human-centered service model, not to replace employees, with innovations like V-Claim on V-Call.
As Thailand grapples with economic headwinds and structural challenges that have trapped the nation in decades of sluggish growth, Viriyah Insurance is charting a distinctive path forward with its "Beyond Protection is Value" philosophy, positioning service excellence and customer-centric innovation as the keys to sustainable success.
Managing Director Amorn Thongthew, the third-generation leader of the 78-year-old family business, is steering the company away from destructive price competition towards a comprehensive value proposition that leverages technology, expands partnerships, and prioritises human-centred service delivery.
"Although everyone might see that the country's economy doesn't seem to be doing well, the non-life insurance business has actually managed to grow by approximately 3 to 4%," Amorn said during a recent exclusive interview, highlighting how economic uncertainty has paradoxically boosted demand for financial risk management products.
Navigating Thailand's Economic 'Challenges'
Thailand finds itself ensnared in what Amorn describes as multiple structural "blockages" that have plagued the economy for decades: middle-income stagnation, household debt reaching 88.2% of GDP, below-standard debt quality, chronically low growth rates compared to regional peers, and outdated industrial structures that fail to meet global demands.
Amorn observed that despite the general economic sentiment, the non-life insurance sector has demonstrated resilience, managing to grow by an estimated 3 to 4%. He noted how economic uncertainty has paradoxically boosted demand for financial risk management products.
Rather than retreat from these challenges, Viriyah Insurance is doubling down on its strategic differentiation.
The company's recent performance validates this approach, with premium income reaching 28.045 billion baht by August and achieving 5.5% growth - significantly outpacing both its own 3.7% target and the broader industry's 3.4% expansion.
Betting on Electric Vehicles Despite Losses
A key driver of Viriyah Insurance's growth has been its early adoption of electric vehicle insurance, despite the product currently generating losses of "tens of millions of baht." Amorn defended this strategic choice as fulfilling the company's social responsibility.
"Many insurers don't accept [EV insurance], but we consider it our duty. We can still absorb [the losses] because of our large base," he said. "We have a clear policy that we will insure EVs, but with appropriate premiums and conditions."
The company plans to adjust EV premiums gradually to achieve sustainability, with current rates already 15-20% higher than conventional vehicles and further increases planned.
Technology as Enhancement, Not Replacement
Under Amorn's leadership, Viriyah Insurance is investing heavily in digital transformation whilst maintaining its commitment to human-centred service delivery.
The company has engaged global consultancy Roland Berger to design information architecture and data systems that will support comprehensive AI implementation.
"I see technology as an aid, because people are still number one in service," Amorn emphasised. "Whether it's technology or AI, these will be supplementary tools rather than replacements."
Current innovations include V-Claim on V-Call for mobile claims processing, V-Inspection using AI for vehicle condition assessment, and big data analytics leveraging the company's 78-year operational history and 8 million policy database.
Three-Pillar Strategy for Market Leadership
Under the "Beyond Protection is Value" framework, Amorn has outlined three strategic objectives that will drive Viriyah Insurance's competitive advantage:
Enhanced Service Quality: The company is upgrading every customer touchpoint through omnichannel delivery, ensuring seamless service across online and offline platforms. "We want people to feel that using Viriyah Insurance provides value," Amorn emphasised.
Strategic Partnerships: Viriyah Insurance is expanding its business ecosystem, particularly in electric vehicle services, specialised repair networks, and exclusive privilege programmes. The company aims to grow from 65 to 80 partner brands this year, offering customers unique benefits beyond traditional insurance coverage.
Human Capital Development: Despite technological advancement, Amorn maintains that people remain central to service excellence. The company is implementing comprehensive training programmes covering AI, electric vehicle technology, and continuous learning initiatives under a "Live Long Learning" philosophy.
"We won't compete on price. Viriyah Insurance has grown consistently because we focus primarily on service," Amorn stated firmly.
Future-Proofing Against Emerging Risks
Looking ahead, Viriyah Insurance is developing new products to address evolving risk landscapes, including cyber insurance and solar panel coverage.
The company is also exploring co-payment models for health insurance to manage rising medical costs whilst maintaining accessibility.
"The demand from policyholders... I see it following new risks that emerge, like cyber risks from system damage," Amorn observed.
Sustainable Growth Philosophy
Despite market pressures for rapid expansion, Amorn maintains a long-term perspective rooted in the company's family business heritage.
"Growth means stable, sustainable growth - being an organisation that can grow to become a hundred-year, thousand-year organisation," he said.
The company targets reaching 15% market share within 2-3 years from its current 14.5% position, whilst maintaining financial stability and service standards.
As Thailand's insurance sector navigates economic uncertainties and technological disruption, Viriyah Insurance 's combination of traditional values and innovation-driven transformation under third-generation leadership appears to be resonating with both customers and investors seeking stability in volatile times.
Viriyah Insurance, established in 1947, is one of Thailand's largest non-life insurers with over 100 claim service centres and branches nationwide and a network of more than 4,000 agents. The 78-year-old company serves over 8 million policyholders through comprehensive motor and non-motor insurance products.
