AIA Insurance plans to make Thailand its biggest market

Hong Kong-based AIA Insurance announced last week that it is planning on making Thailand its largest market in the world, with its CEO voicing the company’s deep and long-term commitment to doing business in the Kingdom. AIA is the fourth-largest insurance company globally in terms of market capitalization.

“We are ready to reinforce AIA Thailand in terms of finance, experience, and innovative products that benefit policyholders,’’ said Mark Tucker, group chief executive and president of AIA Group.

Thailand is now the second-largest market for AIA behind Hong Kong, with seven million policyholders. Tucker believes, however, that the Kingdom could become the biggest contributor to the group within three years. He cited Thailand’s economic development, low insurance-penetration rate, growing middle class, and the quality of the firm's agents as factors that could propel Thailand to the top slot in terms of market share.

The Kingdom accounted for 19 percent of all new business for AIA Group in 2013, with Hong Kong providing 28 percent. AIA earned US$1.49 billion from new policies and other businesses last year.

Tucker said demand and opportunities exist in providing more ‘protection’ programs for people in Thailand. AIA is, therefore, planning a health and wellness program, and Thailand will be the first of the 17 countries in which the company operates to launch that product. Although other insurers are already offering health and wellness options in the Thai market, Tucker said more competition would benefit both the industry and the public because consumers will have more choice.

“The low penetration rate in Thailand affirms that we can do more to provide protection programs to Thai people. The need of people is protection, so AIA has to offer protection policies to cover the needs and respond to all life stages," Tucker said.

AIA’s business grew a healthy 22 percent during the first quarter of 2014, compared to the same period last year. The company’s acquisition of ING Malaysia and Sri Lankan insurer Aviva NDB helped boost its bottom line. But Tucker said he preferred to see “organic” growth resulting from the business’s ability to understand what people want and then provide it.

AIA’s commitment to investing in Thailand is evidenced by its investments in two new office towers. The first building, AIA Capital Centre, opened last week and the second, AIA Sathorn Tower, will be opened next year.

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