Krungthai Panich Insurance (KPI) aims to increase its total premiums by 10% next year, despite concerns over escalating risks from natural disasters, the implementation of new accounting standards, and challenges associated with electric vehicle (EV) insurance.
President Suchavadee Sanganong noted that KPI is expected to fall short of its targets this year, projecting total premiums around 4.5 billion baht and net profits of about 500 million baht. In comparison, the company recorded insurance premiums of 5.5 billion baht and a net profit of 600 million baht in 2023.
This decline is largely due to the ending of a motor insurance partnership with Roojai, which has since developed its own business, along with an increase in natural disaster insurance claims, with flooding resulting in approximately 200 million baht in damages.
“For car insurance, we are focusing on maintaining existing customer relationships, including those with EV owners, but we’re being cautious about offering new EV insurance policies. Setting EV premiums is a delicate matter due to the associated risks,” she explained.
Domestic new car sales are projected to be under 800,000 units this year, falling short of the 1 million target, Ms. Suchavadee confirmed.
The property and casualty insurance sector grew by 10% this year, although premiums are lower compared to motor insurance. Accident and health insurance performance remained stable, but KPI believes there is significant growth potential in these areas in the future.
KPI currently maintains an investment portfolio valued at 7 billion baht, yielding a return of 4.5-5% annually, with a typical yearly increase of 10-15%.
This year, 60% of total profits are attributable to returns from the investment portfolio.
Looking ahead to next year, KPI expresses concerns about the rising likelihood of natural disasters, shifts in accounting standards, and the unpredictability of the EV insurance market, Ms. Suchavadee stated.
Over the next five years, KPI plans to leverage advanced technologies to enhance operational efficiency, including strategies for developing team capabilities, which are crucial for organizational growth. These strategies will focus on talent retention, closing skills gaps, fostering employee engagement, and advancing leadership development to build a robust and sustainable organization.
In a related move, Roojai Group, Thailand’s leading online insurance provider, announced the acquisition of DirectAsia Thailand from Hiscox Group yesterday.
This acquisition boosts Roojai’s market presence with a combined portfolio insuring over 300,000 vehicles in Thailand.
Earlier this year, Roojai also acquired FWD General Insurance from Boltech and has since rebranded it as Roojai Insurance, positioning itself as the largest full-service digital insurance company in Thailand specializing in retail insurance products.
“DirectAsia and Roojai align in our mission to simplify insurance and offer competitive rates to responsible drivers,” said Roojai founder and group chief executive Nicolas Faquet. “This consolidation will create synergies that will support the expansion of our direct insurance model.”
