Bupa eyes more individual policyholders

Bupa Health Insurance (Thailand) plans to raise the ratio of its individual policyholders to 90% in the next five years, from 50% now, to catch up with the fast-growing and higher-margin market.

With greater demand in health-protection products from individuals, the group will be the company’s main growth engine in the long term, said managing director Christopher Dennis.

At present, Bupa’s proportion of individual and corporate customers is 50:50.

The British company’s local arm expects total premiums to rise to 8 billion baht with a customer base of 1 million in 2020, up from 400,000 at the moment.

Bupa plans to keep its existing corporate customer base despite the aggressive move into individual policyholders.

Premium value is forecast to reach 3 billion baht this year, up from 2.5 billion in 2014.

Development of sales distribution is another key strategy to expand the business over time.

Telesales and branches are currently the company’s major distribution channels. Bupa plans to triple its telesales staff to 120 this year.

The company has 18 branches across the country.

“We aim for 900 million baht in first-year premiums this year, of which 600-700 million baht or 70-80% will come from telesales and branch channels,” Mr Dennis said.

For the bancassurance channel, Bupa has partnered with United Overseas Bank (Thai) for five years and has no plans to add more banking partners.

The agreement should strengthen health insurance sales in the bancassurance channel through closer dealings with the partner.

Expanding into Thailand’s neighbours is another long-term growth strategy, but one that will require clearer regulations in those countries.

In any event, Bupa will use Thailand as its hub in the Asean region.

It hopes to follow in the footsteps of a local partner, Bangkok Hospital Group, as it grows in Southeast Asia.