Bangkok--Aug 29--Siam Commercial New York Life
To response to the country's economic recovery outlook, Siam Commercial New York Life Insurance PCL (SCNYL) today announces it will continue aggressive marketing strategy in the second half of 2002 through new distribution channel - Career Agency and Bancassurance. It projects total premium to surge by 50% to 1.5 billion baht by the year-end.
Mr. Donald Carden, president and CEO of Siam Commercial New York Life Insurance said that during the first seven months this year, SCNYL's sales performance was outstanding and well beyond our 2002 sales targets. Our first year premium totaled 340 million baht, an increase of 38% and total premium reached 753 million baht, rose by 27% over last year period.
Individual life distribution produced the excellent sales results with 115.2 million baht in new business, a significant rise of 84%, which is 4 times higher than industry's average growth. The total premium of this channel jumped by 32% to 335.9 million baht. First year premium of corporate business distribution also rose to 156 million baht, up 25% and Bancassurance achieved new premium worth 32.4 million baht.
" The great sales incomes resulted from our aggressive agency distribution. Our strategy of developing the New York Life's career agency system is proving to be a good decision as more than 30% of our current agency business is coming from this channel", Carden explained.
The career agency system was successfully proved in New York Life's international operations worldwide. The career agency will be headed by Managing Partner, a full-time staff who is responsible for recruiting and training his sales managers and agents forces. SCNYL currently has total 8 career agency shops, 4 in Bangkok and another 4 branches located in the provinces.
SCNYL plans to capitalize on the recent government's approval to raise annual personal income tax deduction for life insurance from 10,000 baht to 50,000 baht. " We have prepared special training courses for our agents to cover strategies how to promote this law to their clients. We have also produced a special brochure that explains how this benefits work for their clients", Carden said.
We have seen higher competition in short-term endowment policies that goes on the opposite side with the Thai savings rate. Our competitors are beginning to introduce participating policies and have moved away from products with high guaranteed yield return policies, Carden noted and adding that " As part of Siam Commercial New York Life's strategy, our products will continue to pay high yields that our customers have come to rely on. The current economic conditions also give us more opportunity to sell our Gold Saving policy, a short-term savings product that provides more interesting saving vehicle for the consumers".
SCNYL also plans to introduce Unit Link policies by the year-end if government allows. Since New York Life already sold these types of products throughout the world, the company has the expertise to ensure the highest level of quality within the industry.
Meanwhile, Kaida Srifuengfung, company's executive vice president, Special Marketing Insurance Group said that since our launch in January this year, Bacassurance distribution showed significant growth and new business totaled 32.4 million baht during January to July. The company now has 457 clients and total sum assured was amount to 233.12 million baht.
The company currently sells life insurance products in 34 branches of Siam Commercial Bank, its partner and one of shareholders. It plans to increase to 100 branches and projects this channel will generate new business of 67 million baht by the end of this year.
The better serve specific demands of bank's customers, the company has planed to launch 6 new products specially designed for Bancassurance in October this year. These new products will cover savings need, education fund, annuity and retirement program.
"We are also preparing to install stage-of-the-art software program called " Power Agent" in October, which is proved very successful in Indonesia, Philippines and Taiwan operations. The new software will be effective vehicle to analyze the real need and right products and also help customers make the right decision. This is the first of its kind in the Thai industry that provides effective selling tools for the program". Kaida said. Since the beginning this year, the company has continued to renovate existing branches and expand new branches. It now has 30 branches nationwide and plans to increase more 9 branches next year, 6 will be career agency and 3 will be base shops.
" From the great results in the first half of this year, we forecast to achieve a total premium income of 1.5 billion baht, more than 50% increase over last year. With our plans for building the famous "Career New York Life Agency" system here now turning to a reality, our focus will go to Bancassurance where we plan to be a market leader, Carden noted.
For more information, please contact
Khun Nantawan Kijthanacharoen
Tel. 0-2655-3000 ext 3839 Fax. 0-2256-1517
Email :
[email protected]
www.scnyl.com End.
-SN-