Bangkok Insurance (BKI), a non-life insurer majority-owned by Bangkok Bank, is studying a plan for a joint venture with Chinese investors to establish a repair garage for electric vehicles (EVs), in a bid to support the company's long-term growth potential.
The feasibility study is looking at establishing a general repair facility that has high standards as an EV service centre, said BKI chief executive Apisit Anantanatarat.
"An EV repair garage could help address high repair costs. Currently EV owners must rely on dealer service centres, which are expensive," said Mr Apisit. "Building a contracted EV repair facility that meets the quality standards set by manufacturer service centres would enable better price control and lower repair costs."
BKI is also in discussions with Chinese manufacturers to import EV spare parts, aiming to reduce repair expenses. The company plans to carefully assess the investment, considering the economic slowdown and high competition in the industry, he said.
BKI has insured 7,000 EVs, with total insurance premiums of 215 million baht, out of an estimated 160,000 EVs in the Thai market. The business remains small and in its early stages, with a loss ratio of around 67%, meaning BKI has yet to turn a profit from EV insurance.
Despite this, the company has no plans to increase EV insurance premiums, as BKI's current pricing is already higher than the industry average, said Mr Apisit.
This year, BKI aims to increase total insurance premiums to 34.2 billion baht, growth of 8% year-on-year. Motor insurance is projected to tally 14.7 billion baht, up 11%, and accounts for 43% of total premiums.
Non-motor insurance is expected to total 19.5 billion baht, rising 7%, to make up 57% of total premiums.
He said the automotive market slowdown remains a challenge. Last year vehicle sales fell below expectations, missing the target of 800,000 units by around 500,000 vehicles.
To drive growth, BKI wants to expand its dealer network, add more business partners, and enhance marketing efforts throughout this year, said Mr Apisit.
For non-motor insurance, growth should be supported by the expansion of property risk insurance, particularly from large government infrastructure projects, in line with increasing state budget disbursement, he said.
Demand for natural disaster insurance has been increasing, driven by climate change, global warming, and more frequent natural disasters, said Mr Apisit.
Health insurance is also expected to expand, driven by growing health concerns, such as seasonal diseases linked to environmental changes, worsening PM2.5 levels, and rising medical costs, which make health insurance an essential safeguard, he said.
BKI sees these trends as drivers of future growth in the insurance industry, adapting to global risks and shifting consumer needs, said Mr Apisit.
BKI president Lasa Sophonpanich said the company is preparing to launch new insurance products in the second quarter, aligning with evolving customer lifestyles under the company's "lifestyle insurance strategy".
The upcoming insurance plan offers coverage for serious diseases, including Alzheimer's, Parkinson's, cerebrovascular problems, chronic kidney failure, viral encephalitis, and diabetes.
Customers can receive coverage ranging from 100,000 baht to 1 million baht upon initial diagnosis of a critical illness, along with daily compensation to help cover expenses during treatment. Premiums start at 1,600 baht per year.
BKI is also expanding offerings to capture more market segments, including travel and luxury home insurance (covering properties valued at 20-50 million baht), as well as Class 2+ car insurance, which extends coverage to vehicles up to 25 years old. These products will be accompanied by various promotional campaigns to attract a wider customer base, said Ms Lasa.
Mr Apisit expects the non-life insurance industry to grow by 1.5-2.5% this year, reaching 291-295 billion baht in premiums. Despite economic challenges, BKI aims for 8% growth, focusing on enhancing credibility, developing innovative products and services, and leveraging digital technology to improve customer experience through greater convenience and speed.
Last year BKI reported total premiums of 31.7 billion baht, up 6.1% from 2023, with net profit rising by 0.5% to 3.06 billion baht.
