The new agreement builds on the successful collaboration between SCB and FWD Thailand, which has driven significant growth in recent years. FWD Thailand has grown its value of new business at a compound annual rate of 67% from 2019 to reach US$270 million in 2022. FWD Thailand has been ranked number one in the market in bancassurance channel by new business sales.
Mr. Kris Chantanotoke, Chief Executive Officer of SCB, said: "Since 2019, Siam Commercial Bank has entered into a strategic partnership with FWD Group to distribute life insurance products through the Bank's channels, with a shared commitment to providing protection products and utilising digital technology to create innovative customer experiences. This collaboration has played a pivotal role in propelling SCB's bancassurance business to rank number one in the market. The Bank is thrilled to further expand this partnership with FWD and jointly develop insurance products and digital platforms that cater to the evolving needs of customers in Thailand, as well as further paving the way for our recent business objectives which aim to expand to affluent and digital customers. This collaboration will enable SCB to maintain its position as a market leader and achieve its mission of becoming a Digital Bank with a Human Touch, excelling in wealth management, and delivering seamless service experiences across all channels for customers."
SCB is one of Thailand's domestic systemically important banks, with 660 branches as of 31 December 2022. FWD Thailand's insurance products and services are fully integrated into SCB's digital tools and are accessible by 78% of the bank's customer base At the end of 2022, FWD Thailand had a base of approximately 1.4 million policyholders through its partnership with SCB.
Mr. Peter Grimes, Regional Chief Executive Officer of FWD Thailand and Cambodia, said: "As FWD Group marks its 10th anniversary year, we're delighted to extend this increasingly successful partnership. FWD and SCB have a shared focus on providing digitally-enabled services that put customers first and at the centre of everything we do. We look forward to continuing on our journey of changing the way people feel about insurance in Thailand - a country with a large, increasingly affluent, and digitally literate population."
Since FWD Group's acquisition of the life insurance entity of SCB and the commencement of the bancassurance partnership with SCB in September 2019, FWD Thailand has enhanced its business scale, distribution reach and brand visibility. Within six months of the launch of the partnership, FWD Thailand and SCB created the leading bancassurance franchise by gross written premiums in Thailand, according to data from the Thai Life Assurance Association.
There remains significant untapped potential within the Thailand life insurance market as the population remains substantially underinsured. Life insurance penetration in Thailand was 3.8% at the end of 2021, and the country's protection gap was US$4.1 billion. With a population of 72 million people, Thailand's income per capita growth was 3.9% at the end of 2021, compared to the global average of 3.0%. Thailand's mobile and internet penetration rates were also 96% and 68% respectively.
Source: Siam Commercial Bank
