For the crucial development within Thailand’s insurance sector, Bangkok Insurance is gearing up for a major shift. The company’s CEO and President, Apisit Anantanatarat, has highlighted the growing demand for electric vehicles (EVs) and the consequential expansion of the insurance industry.
Unique EV Challenges
The Nation reports that EVs pose distinct challenges for insurers. Their higher loss ratio, a result of specialized repair needs and expensive spare parts, particularly batteries, sets them apart. EV batteries, often irreparable, can cost up to 60% of the vehicle’s total price. Furthermore, damaged EVs offer negligible value from their spare parts, affecting insurance rates.
Risky Competitive Rates
Thai insurance firms are aggressively pricing EV insurance, a move that Apisit views with concern. This strategy might fail to account for the higher loss ratio inherent to EVs, potentially destabilizing these firms financially. Apisit stresses the urgency of premium recalibration within two years to avoid financial pitfalls.
Insurance’s EV Market Focus
Despite these hurdles, Bangkok Insurance remains committed to the EV market, earmarking it as a 2024 priority. This commitment aligns with a reported tenfold increase in Thailand’s EV sales. KResearch supports this enthusiasm, projecting Thailand as a future regional hub for EV production.
Personalizing Offerings
Beyond EVs, Bangkok Insurance is broadening its portfolio. The company is set to unveil bespoke insurance packages catering to specific groups like pet owners, senior citizens, and travelers. It is also poised to tap into the rebounding travel insurance market post-pandemic.
Marketing Innovations
Bangkok Insurance is leveraging embedding marketing techniques to augment insurance premium sales. Collaborations with telecom firms and retailers will introduce insurance as an add-on to existing services.
Financial Stability and Growth
Bangkok Insurance’s strategic initiatives mirror its financial success. A 12.5% surge in premium income was reported, totaling THB21.982 billion in the first nine months. Its post-tax net profit from insurance and investments reached THB2.546 billion, with expectations of a THB30 billion year-end revenue.
Outlook
With Thailand’s shift towards electric vehicles, insurers like Bangkok Insurance are recalibrating their strategies. This proactive stance, coupled with innovative approaches, signals a strong future for the industry amidst changing automotive preferences.
AUTO TECH | EV Market Booms, Autonomous Vehicles Pause: 2024 Industry Insights Revealed
