Joins hands with ST Bank to launch bancassurance initially focusing on loans and middle-to-high income retail customer segments

Mr. Sara Lamsam, President and Chief Executive Officer of Muang Thai Life Assurance PCL reveals that ST-Muang Thai Insurance Co Ltd (ST-MTI) recently acquired its official licence to operate its life and non-life insurance business in Laos on 14 July 2016. ST-MTI is a joint venture formed this April by Muang Thai Life Assurance PCL (MTL), Muang Thai Insurance PCL (MTI), Muang Thai Holding Co., Ltd., and ST Group Co., Ltd. - the operator of ST Bank in Laos.

Under ST-MTI's 5-year business plan, the company is determined to become a leader in the life and non-life insurance industry through a variety of insurance coverage that is in line with the needs of ST Bank’s customers. The initial market segment focus will be on business loan customers and retail customers in the middle-to-high income bracket.

The life insurance products that will first be introduced to the market will be credit life protection to protect loan customers from the risks of business ownership or being the main income generator of a business. Later on, life protection and savings products will be developed to offer customers more choices to better meet their diverse needs.

“MTL’s goal is to become a regional company. It is ready to expand beyond its borders in Thailand to the international market, initially the CLMV markets (Cambodia, Laos, Myanmar, and Vietnam). The acquisition of this licence to operate an insurance business in Laos is considered another important step towards becoming a regional company that is strong and comprehensive,” Mr. Sara added.

Meanwhile, Mrs. Nualphan Lamsam, President and Chief Executive Officer of Muang Thai Insurance PCL said, “for non-life insurance, ST-MTI has a plan to first offer fire insurance and property insurance through its bancassurance channel. The company will target bank customers who seek protection for property registered as collateral for bank loans. In addition, auto insurance will be part of the initial focus as the Lao auto market is expanding rapidly, with a consequential rise in demand for auto insurance as well.”

“The joint venture in Laos is considered a borderless business between Thailand and Laos. Auto insurance under Muang Thai Group, in particular, will greatly benefit as it will be able to provide excellent services to both Thai and Lao vehicles traveling between the two countries both for tourism and transportation of goods. This will also be a great opportunity to expand our customer base. This year, ST-MTI will urgently develop personal accident insurance, transport insurance, and insurance for all types of risks to offer businesses protection against interruptions,” Mrs. Nualphan said.

Even though the initial business plan will focus on bancassurance, ST-MTI is already planning to develop an agency channel as Lao consumers prefer to purchase insurance from a credible and trustworthy acquaintance who can explain the complicated details of insurance products. The agency channel will be adept in explaining product features and answering questions about products to customers. ST-MTI is targeting to have a sizeable number of agents deployed in all provinces.