Press Releases

In 2022, Thai Life Insurance aims to focus on market expansion for both current and new customers by offering tailored-made products that meet the needs as well as encouraging life insurance agents to adopt digital tools to increase their capability. The claims ratio is not significantly affected by the COVID-19 pandemic thanks to effective claim management.

Mr. Chai Chaiyawan, Director and Chief Executive Officer of Thai Life Insurance (“TLI” or the “Company”) revealed, “Thai Life Insurance has determined its business purpose to become the smart solutions for all questions regarding life insurance, health insurance and personal financial planning or a “Life Solutions Provider” to affirm the vision of becoming a sustainable insurance company.”

As for the business objective in 2022, the Company has set a target of higher first-year premiums, focusing on developing new markets of both current customers through the sale of a second policy, as well as family insurance plan, and the new customers, which will engage high-net-worth customers and working-age customers.

“The Company continually develops and refines its business operations in all aspects, including the personalized products for every life stage, life event and lifestyle, the impeccable services beyond life insurance, and distribution channels, such as upskilling and reskilling for insurance agents together with digital transformation that combined into our end-to-end process, leveraging new technologies for demand analysis to closing the sales, issuing the policy, and making a payment” stated Mr. Chai.

In the meantime, the Company encourages salespeople to adopt digital tools to increase their efficiency, including using MDA Plus applications, which are a group of applications that supports the operation of life insurance agents: sales, recruitment, customer service and team management, or encouraging the insured to use the application ‘Thai Life Insurance’. In addition to viewing the details of insurance purchased and conducting transactions, the Company plans to develop an interest-based platform for digital lifestyle to strengthen Thai Life Insurance brand and gain trust from the insurer.

For the performance of Thai Life Insurance in 2021, the Company’s first year premiums totaled 10,270.65 million baht. Renewal premiums totaled 72,747.72 million baht. A persistency ratio was 88.6%. Single premiums amounted to 7,430.64 million baht, and total premiums were recorded at 90,451.49 million baht.

“According to the Company’s data of new business premiums, endowment life insurance ranked the highest in 2021, representing 55.1% of Annual Premium Equivalent. While riders, whole life insurance and investment linked life insurance were 13.6%, 12.3% and 7.3% of total first-year premiums calculated annually respectively. However, investment linked life insurance and riders has an increased premium growth rate compared to 2020, which conformed with the demand of consumers that started to look for alternatives to savings and other forms of investment for the purpose of risk diversification, as well as choosing health security and alleviating the burden of healthcare expenses” Mr. Chai said.

Such consumer trends have urged Thai Life Insurance to set a growth target for premiums from life insurance products in 2022, including focusing on selling Unit Linked Product or Participating Product (PAR-Product) as well as various types of riders.

Mr. Chai added, “Though part of casualty insurance industry was affected by the COVID-19 pandemic crisis in 2020, such incident did not significantly affect the Company’s claims ratio as Thai Life Insurance does not provide casualty insurance with COVID-19 lump-sum payments (1) where most claims only provide extra coverage from health riders. The claims relevant to coronavirus disease generally arise from the customers who purchased the riders for health insurance and the compensation of income loss due to hospitalization. Nevertheless, the increase of claims is offset by the decrease of claims for health expenses in other cases since the people avoided visiting the hospitals during the outbreak of COVID-19. Moreover, Loss Ratio also dropped from 5.8% in 2019 to 5.1% in 2021. Payment of benefits and expenses claim as defined by insurance contract related to COVID-19 in 2020 and 2021 amounted to 1.6 million baht and 899.6 million baht, or 0.04% and 19.47% of total claims for medical expenses and expenses during that period respectively.

The Company has financial stability with the Capital Adequacy Ratio (CAR) at 355.22% as of December 31, 2021. This indicates that the Company is capable of effective management.

Thai Life Insurance has commits to operating business on solid foundation, prudent risk management, good corporate governance, and adaptive operational efficiency development. The Company aims to help create a strong and sustainable Thai society through activities that enhance quality of life pursuant to Sustainable Development Goals (SDGs).

Remark:
(1) “Lump-sum payment” product means the health insurance under which the Insured shall be entitled to a lump-sum payment up to the amount insured if found to have contracted COVID-19. The product is offered by casualty insurance company.