Amid the expanding landscape of the insurance industry, with new market players emerging and innovative products being introduced to attract consumer interest, insurance companies in Thailand have formulated strategies to foster business growth.
At Allianz Ayudhya General Insurance (AAGI), a subsidiary of the renowned Allianz Group, strategies for growth are centered around introducing new products, fortifying distribution channels, enhancing personnel expertise, and tapping into the global knowledge and network offered by its German parent company.
RISK MANAGEMENT
Recently, AAGI unveiled Allianz Commercial, a specialized insurance provider catering to corporate clients, including medium to large businesses and multinational corporations. This new entity is equipped to handle niche risks in areas like construction engineering, major infrastructure projects, marine ventures, along with offering casualty and liability insurance.
The launch of Allianz Commercial aligns with AAGI’s objective to achieve a 20% growth rate in its corporate business segment this year, as highlighted by President and CEO Lars Heibutzki.
He emphasized, “One of our primary strategies this year is to expand further into our corporate insurance offerings to address specific risks faced by large businesses, including operational disruptions, natural calamities, cybersecurity threats, and the complexities arising from emerging technologies, which were flagged as significant concerns in our annual Risk Barometer report for Thailand.”
Supported by the vast expertise, financial stability, and global network of the Allianz Group spanning over 70 countries, Allianz Commercial aims to play a pivotal role in the broader business expansion plan across Asia, stated Christian Sandric, the regional managing director of Allianz Commercial Asia.
Mr. Heibutzki underscored that the focused approach on safeguarding large corporations through Allianz Commercial is poised to drive substantial growth for AAGI, bolstered by the backing of Allianz Group and the company’s solid reputation as a leading international insurer.
SUSTAINED EXPANSION
He further noted that Allianz’s non-life insurance arm in Thailand has shown remarkable growth, escalating from about 4 billion baht in gross written premiums (GWP) in 2018 to 6 billion in 2021 and 10.1 billion last year.
“Our 6% increase in GWP outpaced the Thai industry average of 3.6%,” mentioned Mr. Heibutzki, who assumed his role at AAGI in 2019.
Key accomplishments encompass the accessibility of health protection products for customers of all age groups, technological advancements in customer service through online platforms, and the acquisition of Aetna health insurance in May 2022.
Benefitting from the robust backing of Allianz Group, recognized by Interbrand as the world’s top insurance brand, the Thai unit has earned the trust of global customers to manage and safeguard their lives and assets, propelling business growth, as per Mr. Heibutzki.
Globally, Allianz witnessed a 5.5% surge in total business volume last year, amounting to €162 billion (6.3 trillion baht). Within AAGI, the health insurance portfolio experienced a substantial 14% growth, generating 3.2 billion baht in premiums. Conversely, motor insurance premiums saw a modest 3% rise in a highly competitive insurance market to reach 3.3 billion baht. Non-motor insurance premiums saw a 5% uptick to 3.5 billion baht.
“AAGI is committed to fostering continuous growth through bolstered distribution channels, innovative product development, and providing exceptional customer experiences. Our aspiration is to cultivate and retain a skilled team of professionals, maintaining our status as an employer of choice,” affirmed Mr. Heibutzki.
“With a specific focus on health and commercial insurance, we anticipate another successful year in 2024 for our business, targeting a GWP of nearly 12 billion baht.”
KEY STRATEGIES
In pursuit of growth in 2024, AAGI is set to build upon three core strategies, the first of which revolves around enhancing distribution channels, offering comprehensive insurance solutions tailored to meet customer needs across various segments, from retail to small and medium-sized enterprises (SMEs). This approach aims to provide coverage for business properties and unforeseen operational disruptions, with the upcoming launch of a new SME insurance package and international private health insurance this year.
Mr. Heibutzki emphasized a cautious approach towards offering motor insurance protection for electric vehicles.
The second strategy centers on establishing a sophisticated digital business platform to elevate the overall customer experience, ensuring swift and efficient access to services. Over the past year, Allianz Ayudhya exceeded the market average in Thailand in terms of net promoter score, a metric reflecting customers’ likelihood to recommend the company to others.
“We maintained a high customer satisfaction score of 4.8 out of 5, showcasing our commitment to continuous enhancement,” mentioned Mr. Heibutzki.
The third strategy underscores building a culture of excellence within the organization, focusing on advancing the professionalism of employees and fostering their engagement.
“Employee engagement is a pivotal area of focus for the Allianz Group. We engage in initiatives that create and reinforce bonds across all generation of employees,” added Mr. Heibutzki. Alongside benefits aimed at enhancing employee satisfaction and loyalty, Allianz has been recognized as one of the most sought-after employers in Asia for three consecutive years, based on a survey by HR Asia.
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