Year 2007

2. Underwriting Risks
Thailand has confronted a number of economic risks such as a slowdown of the US economy, continuous oil price
rises and appreciation of the Baht. These risk factors have had a tremendous impact on all types of industries. The Company itself
also encounters economic risks; for instance, a decrease in the export sector, a reduction in industrial and business productivity,
an increase in the cost of goods and services resulting in inflation, as well as the people’s decreased purchasing power
contributing to a diminution in policy purchasing and renewal, or more selectiveness in buying insurance.
To minimize these risks, The Company has developed new products to meet the demands of its customers. For
example, the “1 st Care & Save” motor insurance policy, which provides coverage for the damage to a car stemming from a
collision with a land vehicle, with a cheaper premium. The Company also focuses on augmenting its personal customers through
Telemarketing and Bancassurance projects in order to retain its customer base. It will emphasize the provision of an excellent
service and the development of an IT system so as to increase underwriting efficiency, as well as an altered phone system to IP
Telephony aimed at giving greater convenience to the Company’s customers when purchasing a policy or notifying for a claim.
3. Reinsurance Risks
For the non-life insurance industry, there are inward reinsurance and outward reinsurance with insurance companies
both inside and outside the country. In regard to this fact, the Company is exposed to risk incurred by reinsurance companies’
financial status, or the underwriting of high risks. To minimize such risks, the Company has analyzed the financial status and
considered the credit rating of all reinsurance companies. In addition, the Company also purchases excess of loss cover in order
to manage its risk in the event of a tremendous calamity.
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