On-line insurance coverage may very well be a life preserver amid intense competitors for insurance coverage gross sales merchandise, however the channel wants a while to combine improvement for the entire business, says the regulator.
Many insurance coverage corporations are paying larger consideration to growing expertise associated to on-line gross sales of insurance coverage merchandise, driving that market to develop significantly the previous 5 years.
Nonetheless, there’s a lengthy solution to go for the net insurance coverage market to develop and turn into as acquainted as digital banking is now.
“On-line insurance coverage in Thailand generally is a survival strategy for some insurance coverage merchandise going through fierce competitors reminiscent of journey and auto,” stated Suthiphon Taweechaiyagarn, secretary-general of the Workplace of the Insurance coverage Fee.
“The net channel helps cut back the fee and brokerage charges.”
“However on-line insurance coverage continues to be not absolutely built-in. Though product gross sales and insurance coverage claims might be achieved on-line, these claims are nonetheless paid in money.”
Whereas the provision of on-line insurance coverage merchandise stays slender, auto insurance coverage corporations ought to assist develop new merchandise that match prospects’ wants, he stated.
For instance, there may very well be insurance coverage safety for motorists or automotive rental companies which have autos that aren’t used every day.
This strategy may also help handle the price of operations and permit corporations to earn a revenue whereas nonetheless providing a greater value for worth, stated Mr Suthiphon.
“On-line insurance coverage has a really excessive potential to develop quickly within the close to future supported by superior expertise, which the brand new technology of consumers is acquainted with,” he stated.
“They will seek for data on their smartphones with out the necessity of getting somebody describe product traits.”
Many main insurance coverage corporations are investing big sums in insurance coverage expertise.
As soon as they’ll present built-in on-line insurance coverage options and companies to prospects, the insurance coverage market is poised to develop exponentially over the following Four-5 years, stated Mr Suthiphon.
OLDER ONLINE CUSTOMERS
As an auto insurance coverage dealer working strictly on-line, Roojai.com noticed that extra older prospects have been buying auto insurance coverage schemes than anticipated.
Primarily based on its 50,000 prospects after almost 4 years of operation, the age vary with the most important chunk of consumers shopping for auto insurance coverage is 30-39, accounting for 46%.
That is adopted by prospects aged 40-49 making up 29%, whereas these 50-64 comprise 15%, 18-29 make up 10% and 65 and older comprise 1%.
“We had been fairly stunned with the age vary of on-line purchasers as prospects aged 40 and over contribute greater than 40% of the whole, and most of them make on-line insurance coverage funds,” stated Roojai.com founder and chief govt Nicolas Faquet.
Men and women make up an equal proportion of Roojai.com’s on-line auto insurance coverage patrons.
Mr Faquet stated one other shock is prospects outdoors Bangkok and metropolitan areas account for half of patrons, boasting a re-purchase charge of some 75%.
Most prospects will not be within the location of the corporate’s headquarters nor service branches, however quite deal with insurance coverage costs and the service offered within the occasion of an accident, he stated.
For the primary 9 months of the yr, the corporate registered complete premiums of 350 million baht, up from 150 million logged in full-year 2018.