Health insurance

Bangkok Life sees growing demand for health insurance

Bangkok Life Assurance (BLA) expects demand for health insurance to increase in 2022 following economic recovery and rising interest rates.

The company also plans to focus on unit-linked insurance, health insurance, insurance for the elderly and retirement products this year, according to Chone Sophonpanich, president and CEO of BLA.

BLA yesterday unveiled its business plan for the next three years under the slogan “A journey towards a sustainable future”, which focuses on five dimensions to improve the competitiveness and sustainability of the company.

Chone said health and savings insurance will become more attractive this year as many central banks have started to signal interest rate hikes, especially unit-linked products that combine life insurance with exposure to investment, as they respond better to customer demand for hybrid products.

He said unit-linked products were attracting customers even with low interest rates and seeing steady sales growth on the digital platform.

As Thailand becomes an aging society in its own right, health, dividend and pension insurance will also become popular as more people seek security in these long-term insurance products, Chone said. .

In 2021, Covid insurance claims accounted for 2% of total claims payments, posing no threat to the financial stability of the business as the cumulative value of claims remained close to the annual average.

The company is monitoring the pandemic situation in case there is a significant increase in cases, although the majority of the population has already been vaccinated.

Regarding the direction of BLA’s investment management in 2022, Chollada Sophonpanich, executive vice president of the investment division, said that 80% of the company’s investment portfolio has been allocated to fixed income securities. , including government and corporate bonds.

This year, as interest and inflation rates rise, BLA will diversify into foreign equities and increase its investment in private equities, she said.

To hedge against market volatility, the company also plans to focus more on value stocks rather than high-growth stocks unless they’re reasonably priced, Ms. Chollada said.

According to the Thai Life Assurance Association, total premiums received in the life insurance industry in the first 11 months of 2021 amounted to 545 billion baht, up 2.56% from the same period. last year.