The Thai Setakij Insurance announced that the company is aiming to resume its medium-sized insurance company. The company aims to expand its portfolio in Non-Motor insurance, and expects to achieve at Baht 1 billion of Gross Written Premiums in 2021.
Mr. Tanaphol Bunwarut, Chairman and Chief Executive Officer of The Thai Setakij Insurance Public Company Limited or TSI Insurance, disclosed a business plan for 2021 that the company will continue to strengthen its growth. In the past few years, since the shareholders restructuring, the company has accelerated its growth internally and externally including major changes in business management structure, human resource management and financial performance. The maintenance of the Capital Adequacy Ratio (CAR) has been prioritized in particular, to drive sales in both Motor and Non-Motor insurances. In 2020, the CAR was recorded at approximately 500%, which is above the Office of Insurance Commission's specified standard at 140%.
Through the competitive strategies on both products and services, TSI Insurance aims to achieve a minimum premium of Baht 1 billion, or a 30% growth in 2021. The company focuses on Non-Motor insurance and seeks collaboration with high-potential business partners to expand Non-Life insurance clients in both B2B and B2C. Recently, the company has signed an MOU with Haier, a Chinese leading electrical appliances provider, under the "Smart Sharing" project to provide insurance for the loss of air-conditioners.
"In the past years, TSI Insurance has been committed to delivering improvements and building a strong foundation for the company's sustainable growth. We have reshaped the company's vision, renewed the organization's culture and implemented a customer-centric approach to become an insurance company that can respond to customers' demand in all segments effectively. This will help enhance TSI Insurance's ability to meet customer requirements, deliver excellent services and foster meaningful collaborations with partners, to drive the company towards goals of being a medium-sized insurance company once again within this year."
Miss Alada Phaovibul, Managing Director of TSI Insurance, added that despite the challenges in the last year, especially the Covid-19 pandemic, the Non-Life insurance industry showed a strong growth in 2020, registering a total premium of Baht 254,377 million which increased by 3.9% year-on-year. Moreover, in 2020, the company recorded the Gross Written Premium of Baht 665 million which increased by 31.1% year-on-year. This achievement is the result of the company's major restructuring which brought more efficient procedures for both customers and insurance agents.
In 2020, TSI Insurance reported an Underwriting Profit of Baht 54 million. The company delivered an enhanced performance on controlling expenses, earned higher revenues and achieved a lower year-on-year administrative cost. As a result, the company's loss before income tax was decreased from Baht 175.7 million to Baht 74.6 million, decreased by 57.5%.
Alada emphasized that "The greatest challenge of TSI Insurance this year is to reach its Baht 1 billion of premium due to a competitiveness in the market and the on-going Covid-19 pandemic. With our goals, the company will financially sustainability as higher premium revenue helps the company achieve the Economy of Scale. Meanwhile, we will keep emphasizing on risks diversification and portfolio selection, a strategy which enabled TSI Insurance turnaround our performance quicker than expected. Likewise, we have to maintain the growth momentum this year and be cautious of the uncertainties arise in the future,"
In 2021, TSI Insurance aims to gain more premiums on both Motor and Non-Motor insurance in the proportion of 70:30. For proportionate, the premium of Bangkok and upcountry will be 60:40. The growth of premium from upcountry is welled performance especially in the Southern of Thailand during last year. The company also aims to expand markets to cover the north and northeastern regions.
Furthermore, the company has aligned the work processes of claim services, products and marketing to be more harmonious and able to deliver more effective and agile performance. The company has fostered a stronger connection between departments through the adoption of technology and prioritized more on the claim services through call center in order to deliver high customer satisfaction. These major improvements are the concrete foundations for TSI Insurance to step into its fullest 80th anniversary of Non-Life insurance business.