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Bangkok Insurance delivering value to all stakeholders in Thailand’s insurance industry

Bangkok Insurance
The firm has been consecutively ranked among the top three in the domestic market

Bangkok Insurance has established a strong financial presence in the country with over 72 years of industry expertise. The firm has demonstrated high performance in the last few years — and is consecutively ranked among the top three insurance companies in the Thailand insurance market. 

Bangkok Insurance is continuously innovating its products and services — and has invested efforts to support the community in several ways. Its corporate policies, strategies, action plans and activities are in line with its concept of Your Caring Partner. 

Providing value to shareholders

Bangkok Insurance strives to provide sustainable wealth to shareholders by striking a balance in business expansion and maintaining operational standards, in line with the risk management processes. In 2019, the firm achieved an impressive growth rate of 19.9 percent of direct written premium, compared to the market growth rate of 6.1 percent. 

It ranked first among SET-listed insurers in terms of attaining profits. Bangkok Insurance follows specific competition guidelines: 

Motor insurance: Several players have adopted pricing as a competition strategy on the back of price wars in the industry. This in turn has led to losses and deterioration of shareholders’ wealth. 

However, Bangkok Insurance is focused on high quality services after sales rather than competitive pricing. This has enabled the firm to stay ahead of the competition in the market. 

In 2019, its share of the voluntary car insurance market increased to 6.8 percent from 5.5 percent in the previous year, with the average insurance premium rate per policy of 23 percent higher than the market rate. 

Non-motor insurance: Bangkok Insurance has emphasised the importance of risk survey to ensure appropriate insurance premium rates and advice on potential risk prevention. 

With prudent underwriting policy, the firm was able to achieve a satisfactory financial performance and pay dividends to shareholders every year. In 2019, it still maintained the corporate ratings at A- (stable) by S&P and A-(Excellent) Outlook Stable by A.M. Best. 

Working as a partner to clients

Bangkok Insurance’s corporate vision To be the preferred non-life insurer in Thailand has helped the firm develop innovative products and services to meet customer needs. The firm has increased its employees’ awareness of working as a partner for clients, rather than just performing the role of an insurer. 

It has consistently invested in information technology solutions to ensure enhanced operational efficiency and risk mitigation. Last year, Bangkok Insurance was certified to have met PCI DSS V3.2.1 standards, marking it the first and only one company in the insurance industry to do so. 

Being subject to such standards testifies its efforts against cyber threats and data security breaches. Also, Bangkok Insurance has developed a variety of mobile applications to provide better services to customers, including online insurance policy purchase, claims settlement and other useful data provisions. 

It has also deployed  cutting-edge technologies: 

  • Journeys by Bangkok Insurance is using AI to understand user behaviour patterns, assess risks and provide recommendations in the form of personalised content. It can further result in reduced risks and discounts on insurance premium rates
  • AI Motor Claims Contact Centre is using AI to draw information from customers who have made claim requests, particularly during the peak period before transferring to a relevant officer
  • Robotic Process Automation is used to provide routine service solutions that eliminate human decision making. This gives employees sufficient time for assignments that require critical thinking, analysis, and interpersonal skills with customers

Bangkok Insurance is focused on ensuring quick turnaround time for claims payment. For example, a capsized boat incident in Phuket led to many casualties. In July 2018, the firm immediately dispatched a number of officers to coordinate with relevant parties at the incident’s site. In addition, Bangkok Insurance was able to make payments for travel insurance claims to heirs of the deceased within one week from the incident, with the total balance of over baht 48 million. 

Based on the above operational policies and the regular care practices, the firm’s insurance policy renewal rate is as high as 77.1 percent in 2019. 

Investing in employees

One of Bangkok Insurance’s goals is to enhance staff capability to become more specialised in the insurance business. For that reason, the firm always committed to enhancing staffs’ skillsets through systematic learning processes and training programmes. 

Bangkok Insurance has realised the importance of retaining quality employees by enhancing their morale and engagement with the organisation. This can be seen from the firm’s efforts to improve the performance evaluation system where work performance must be aligned with organisational goals. In addition, compensation must be granted in a fair and transparent manner. 

As a result, the employee turnover rate of the firm in 2019 was only 3.3 percent, which was lower than an average rate in the Thai labour market of 10.8 percent. 

Supporting the society

Bangkok Insurance’s corporate social responsibility vision contributes to the firm’s sustainable growth. To date, it has integrated the principle of good corporate governance and social responsibility by integrating society, community and environment concerns into its business operations.

The firm has conducted a number of activities supporting education, public health and community development. For example, Bangkok Insurance provided medical equipment worth $960,688 to over 50 hospitals across the country as well as installed water purifiers worth $120,498 at 74 schools in poverty-stricken areas.

Bangkok Insurance’s relentless efforts have helped it to achieve a number of national and international awards. The firm won the International Finance Award for The Best Non-Life Insurance Company 2018-Thailand — which testifies to its immense contribution to Thailand’s insurance industry over the years. 

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