Knattapisit Krutkrongchai, chief executive of Krungthai AXA-Life, said a number of foreign investors are looking to diversify their risks, notably from China, and they see Thailand as a potential location, reports the Bangkok Post.
“Allowing them to buy insurance products in Thailand could facilitate foreign investors wanting to mitigate risks by diversifying their investments,” he said.
Mr Knattapisit, who lived in Hong Kong for 17 years, has been chief executive of Krungthai AXA-Life from Feb 3, 2025. He is the first Thai to assume the position.
This year sees the insurance industry is pressured by low interest rates and slow economic growth, he said.
However, Thailand has a low insurance penetration rate when compared with Singapore, Japan and Taiwan.
“The low insurance penetration rate means the industry still has ample room to grow in Thailand,” said Mr Knattapisit.
Low interest rates put insurers in a difficult position in terms of product pricing, he said.
Low rates reduce investment returns, often forcing insurers to increase premiums or reduce benefits. Conversely, rising rates generally boost insurer investment income from bonds and potentially lower premiums.
Mr Knattapisit anticipates first-year premium growth in the single digits this year, similar to 2025. Health insurance, which contracted in recent months due to the co-payment requirement coming into force on March 20, 2025, could resume growth later this year, he said.
“Krungthai AXA-Life beat the overall market in terms of growth last year,” said Mr Knattapisit, without elaborating on the details.
FOUR PILLARS
The insurer aims to grow the business sustainably with a focus on four pillars. The first is policyholders, who amount to 2.4 million nationwide.
“We aim to serve customers with life and health products that meet their needs, offering services that are convenient and easily accessible through digital channels, such as the Emma by AXA app, which has 1.1mn users,” he said.
The second pillar is sales agents, who act as a bridge between the company and customers.
“We focus on developing the capabilities and expertise of our sales team to provide professional product advice and recommendations, and to support the sales team in growing and generating stable revenue,” said Mr Knattapisit.
AXA provides continuous training, technological support, and business opportunities via the AXA Prime and KTAXA Advisor programmes, which offer a 10-year CAB success bonus of B10mn. The company has more than 13,000 professional agents.
Human resources is the third component, as it creates a work environment that supports employee advancement, skill development and inspiration, noted Krungthai AXA-Life.
Finally, having strong shareholders is vital. The company said there is good synergy between Krungthai Bank and AXA Group, a global life insurance, health insurance and asset management group.
The synergies contribute to Krungthai AXA-Life’s strong financial position in life insurance, noted Mr Knattapisit.