Maxi chases Bt1-billion insurance premiums

Maxi Insurance Broker, a subsidiary of Master Group Corporation (Asia), recently implemented strategic measures to achieve premiums of Bt1 billion by year’s end – after key economic indicators signalled positive factors that could ensure an economic rebound for the business sector. 

Jittiwut Sasibutra, managing director of Maxi Insurance and also the president of Thai Insurance Brokers Association, said several factors involving political events that affected the local economy made it a challenge to achieve half-year target expectations. 

“The Central Bank readjusted 2014 GDP growth figures to 1.5-2.0 per cent, which will affect the insurance industry. Another factor is the auto industry, which experienced a 40-per-cent drop in vehicle sales when compared to 2013. However, the insurance industry is quite resilient with an 11-per-cent growth when compared to 13-per-cent growth in 2013,” Jittiwut said. 

“Insurance premiums in 2013 for the overall industry crossed Bt644.billion, which is broken down into Non-Life Insurance [Bt202.9 billion] and Life Insurance [Bt441.3 billion]”, which according to TIBA figures saw automobile insurance make up 58 per cent in the normal loss category (including voluntary and compulsory) from which 55.9 per cent of the business was channelled. 

“In my opinion it indicates that the significance of the auto industry cannot be overlooked and is a major synergistic player with the normal loss and life insurance sectors of the insurance industry. Competition will be more intense because insurance companies want to achieve their respective premium targets despite stagnancy in the number of customers looking to purchase new vehicles," he said. 

Jittiwut added that Maxi achieved insurance premiums of Bt459.8 million during the first six months of 2014, a growth of 13 per cent compared to the same period last year. However, Maxi’s first half premium target was Bt554.9 million. 

Industry analysts noted that despite negative market conditions, Maxi Insurance Broker was able to increase its customer base by 20 per cent. 

“Maxi has adjusted its sales and marketing strategies to achieve our annual target. Key changes include the creation of new business and employee benefit units catering to large-sized companies based in Industrial Estate Authority zones and automobile dealerships,” Jittiwut said. “In 2013 Maxi achieved a customer base of more than 35,000 policies with premiums of more than Bt750 million from large-scale companies with a net worth of over Bt10 billion. Maxi was also appointed by BMW Leasing (Thailand) to insure BMW and Mini customers in Thailand; other premium customers include Rolls-Royce and the high luxury sports Aston Martin. 

“Based on analysis reports from the Thai Insurance Brokers Association, the local economy is expected to rebound in the fourth quarter of this year after the implementation of several economic policy measures and cash injection,” he said.