TQM targets 7.4% premium growth

TQM, the country’s largest insurance broker by premiums, aims for 7.4% growth in premiums to 10.2 billion baht this year, with traditional channels contributing the largest portion.

More than 70% of the target is to be derived from traditional telesales and face-to-face distribution channels, said president Unchalin Punnipa.

The digital channel, which the company has developed for a while, is also expected to post strong growth because of rising popularity and a low-base effect.

TQM will still pour money into IT investment, particularly in big data analytics to jointly develop insurance products with insurers to meet customer demand, Mr Unchalin said. Aftersales service is another key area that needs to be improved to maintain the customer base, he said.

The company also aims to maintain the portion of its renewal premiums at 35% of this year’s targeted premiums after keeping a similar level for several years.

Motor insurance is expected to dominate, making up 70% of the company’s total premiums this year. The remainder is to come from non-motor insurance products.

The insurance industry’s premium growth is expected to be 5% this year, up slightly from last year.

Separately, chief executive Napassanun Punnipa said the company has offered its own digital platform for insurance operations for three years to both front-office service and back-office operations.

Moreover, it has offered around-the-clock service to customers for both off-line and online channels from the beginning of this year to broaden its consumer reach.

“Sales normally use mixed distribution channels,” Mrs Napassanun said. “They always start from the digital channel and seal the deal by telesales. It would take more time for customers to complete the entire process through the digital channel. The company sees 300,000 to 500,000 online visitors per month, of which 3,000 to 5,000 are converted into customers.”

TQM has a client base of 13 million and wants to increase the number through both traditional and online channels, Mrs Napassanun said without elaborating.

The company seeks to list on the stock exchange and expects to submit the IPO filing next year, she said.