BKI remains upbeat on 8% growth in premiums

Bangkok Insurance Plc (BKI) is confident its premium target of 22.8 billion baht, or 8% growth, is reachable this year on the heels of new insurance products, government megaprojects and crop insurance.

“The strong growth of new products in the first quarter will be a boon to the entire year’s premium growth,” said BKI chief executive Apisit Anantanatarat.

Moreover, insurance for government megaprojects, of which premiums of 100 million baht are expected, as well as crop insurance should also lend support.”

For the first quarter, the company reported total premiums received of 6.14 billion baht, a 25.3% year-onyear increase.

Net profit totalled 669 million baht, a 14.9% gain.

The improved operating performance for the first quarter was attributed to new premiums, especially from Covid-19 insurance and new personal insurance for teacher cooperatives, with total premiums of 200 million baht.

BKI generated 300 million baht in Covid-19 insurance premiums after more than 600,000 policies were taken out.

Mr Apisit said rice and corn plantation areas covered by crop insurance are expected to increase, with the company planning to cash in by raising the crop insurance ratio to 14.5% this year from 5.6% last year.

To make the ratio hit the target, an additional 400 million baht in premiums from crop insurance must be received, he said.

The company yesterday rolled out a new health insurance product with premiums ranging from 400-900 baht per policy.

The new product features coverage for three diseases comprising dengue fever, which is a mosquito-borne disease, hand, foot and mouth disease, and influenza, which often has outbreaks during the rainy season.

Policy holders can claim a lump sum for medical expenses of 20,000-30,000 baht in the event they are hospitalised for at least five days.

For motor insurance, the company will not enter into a price war and used cars are its target as they offer a higher margin and renewal rate.

The company’s renewal rate for auto insurance is projected to increase to 91% this year, up from 87% last year.

BKI plans to expand its presence in Asean in the second half, opening a representative office in Myanmar that was delayed because of the pandemic, said Mr Apisit.