We aim to be the most preferred non-life insurer in Thailand

We aim to be the most preferred non-life insurer in Thailand
We provide our customers with an added service
channel through our BKI Care Station in shopping
malls in order to respond to their demand for greater
convenience, as well as to extend the companyûs
reach to every single customer.
THE THAI NON-LIFE INSURANCE
INDUSTRY IN 2009 AND
OUTLOOK FOR 2010
Marketing and Competition in 2009
In 2009, the overall Thai economy experienced a 2.3 percent negative growth rate, which directly impacted non-life
insurance industry growth. A total direct written premium for the entire industry witnessed only a 3.4 percent growth rate, the
lowest over the past ten years. Motor insurance, having a high market share of 60.0 percent, was the most affected, having a
growth rate of only 2.0 percent, compared to 5.6 percent in 2008. Voluntary motor insurance, in particular, grew by 2.1 percent
and 1.8 percent of Compulsory motor insurance, due to constant negative growth for total motor sales for the fourth consecutive year,
with 10.8 percent negative growth in 2009. Motor markets for commercial vehicles had 17.9 percent negative growth (the highest
over the past four years), while those for personal cars experienced only 1.4 percent growth, compared to 33.3 percent in 2008
(source: The Motor Industry Association). This was coupled with the fact that customers had become increasingly interested in
buying their motor insurance policies at an economical price, such as the “3 Plus” and “2 Plus” policies. In 2009, the loss ratio
incurred by motor insurance slightly increased to 57.0 percent, compared to 56.3 percent in 2008 although many non-life
insurance companies gradually raised their Comprehensive motor insurance premium rate for cars of no more than 2,000 c.c. so
that it was in accordance with rising business costs, both for those of spare parts and labour.
In addition, a number of companies had issued new products to the market for personal accident insurance and health
insurance in order to stimulate their sales due to a high market demand and higher frequency of accidents and malignant
diseases. Meanwhile, there was a slowdown in new investment projects. During 2009, miscellaneous insurance that experienced
over 20.0 percent growth included all risks insurance, engineering insurance, personal accident insurance and health insurance.
In 2009, Bangkok Insurance Public Company Limited was no different from other non-life insurance companies affected by
the economic crisis. Nevertheless, it had consistently adopted proactive strategies for personal line business over the past several
years, coupled with continuously making advertisements and public relations campaigns via a myriad of media over the past 3-4
years, enabling consumers to know and remember more about the Company’s name. Besides, the Company issued such new
products as “ Comprehensive Value Package” a Comprehensive motor insurance policy and “The Value Packages” insurance
policy called, “4 - Classic Diseases” package, and “Salary Man” package, both of which satisfactorily attracted new customers.
Due to the Company’s proactive strategies and new policies, the Company could, in 2009, expand over 30.0 percent of its
personal customer market, with an increase of over 40.0 percent of new customers, mainly via the Telemarketing and
Bancassurance channels.
For its services, the Company has speeded up its development of and increase in the number of garages participating in the
“Bangkok Insurance Recommended Garage” project and those fixing cars on contracts, both in Bangkok and upcountry, in order to
provide convenience to its customers. Furthermore, the Company lends support to its business partners’ performance so that they
are able to use the Company’s work system to carry out their underwriting work and issue policies with convenience and swiftness.
Through the Company’s aforementioned operational strategies, its direct written premium in 2009 experienced higher
growth than the defined target of 14.2 percent. The four main classes of insurance achieving a high growth rate included fire
insurance, marine insurance, motor insurance and miscellaneous insurance, resulting in the Company’s rise in the overall market
share from 6.5 percent in 2008 to 7.1 percent in 2009.
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