KPI and QBE launch new auto insurance product in Thailand and celebrate five-year partnership

A type of Guaranteed Asset Protection (GAP) product, as it is more widely known as in the global automotive protection marketplace, Loan Protection Insurance Policy is a collaboration between Krungthai Panich Insurance (KPI) and QBE Automotive Protection partnering as the reinsurer.  

Auto Loan Protection Insurance covers the financial shortfall in the event of total loss, allowing the vehicle owner to pay off the outstanding balance of finance to fixed benefit.  The Auto Loan Protection Insurance also helps financial institutions minimize bad debt / non-performing loans, as the vehicle owners will be in a better position to pay off their debt in the event of a total loss.  The product has been through the Thai Office of Insurance Commission (OIC) approval procedure during 2024 and is fully compliant with Thai regulation.

In addition, KPI and QBE celebrate a five-year milestone in their partnership this year. To date, their collaboration has been focused on automotive extended warranty, working with a range of banks, automotive manufacturers, distributors and dealers.

KPI aims to enhance its market expansion by targeting new customer segments. Partnering with experienced domestic and international business allies, KPI is set to capture a larger share of the auto insurance market with the introduction new insurance products. This strategic move is designed to strengthen their competitive edge and drive sales growth in the insurance industry.

QBE Insurance has protected more than eight million customer vehicles since 1997 over 27 years in 39 markets around the world. The QBE business has been operating in Thailand for more than 20 years and in six Asian geographies since 2003. 

2024 marks a significant milestone for KPI under the new leadership of Ms. Suchavadee Sanganong, president of KPI. Earlier this year, KPI refreshed its brand to present a modern image that builds customer confidence and aligns with contemporary business trends. This strategic move aims to strengthen and propel the company towards achieving its vision: "Ensure Your Future For A Better Journey." This vision aligns with KPI's six organizational missions: TRUST, SUSTAINABILITY, SIMPLIFIED SERVICE, PARTNERS, EMPLOYEES, and INNOVATION. The company also introduced a new slogan, "Your Trust, Our Care," emphasizing its commitment to meeting the diverse needs of both new and existing customers in today's varied lifestyle landscape.

Ms. Suchavadee Sanganong, president of KPI, stated, "As part of our plan to refresh the KPI brand, we have revisited our corporate strategy and established a new vision and mission. Our business vision, 'Ensure Your Future For A Better Journey,' emphasizes meticulous attention to every aspect of our operations. This commitment extends to our customers, agents, brokers, business partners, and the development of our employees' skills and potential. Additionally, we are dedicated to social responsibility and sustainable development."

Albert Chow, General Manager of QBE Automotive Protection, Asia, stated, "Building on our successful partnership with financial institutions in offering Extended Warranty, Thailand will be our first market in Asia to launch Auto Loan Protection Insurance.  We are pleased to be offering this product to the Thai market and proud of our successful partnership with some of the country’s finest financial institutions. For the first time, Thai vehicle owners will be able to purchase a Thai OIC approved GAP product protecting customers and banks alike. The product aims to offer fair value and is backed by a large financial institution."

The President of KPI, emphasized the importance of adapting to the modern era where customer needs have become increasingly diverse due to various changes, including natural disasters, health issues, and the growing role of technology in work and life. "We see significant opportunities in the insurance market," she said. "KPI prioritizes collaborating with strong partners like QBE Automotive Protection and our current allies to boost sales and explore new customer bases. Our policy also supports seeking new partnerships to expand our reach. Working with key partners like QBE Automotive Protection strengthens KPI."

"In the past year, used car sales in Thailand increased by 5% to 376,075 vehicles with an average value of 399,163 THB. This growth presents further opportunities for us to increase sales in the automotive market. Leveraging QBE's  20 years of experience in Thailand's auto insurance market, we have developed the Auto Loan Protection Insurance product. This initiative aims to protect car owners against bad debt or poor-quality auto loans. The Auto Loan Protection Insurance will launch in 2024, targeting financial institutions with auto leasing services." said Ms. Suchavadee.

"The product will cover total loss and theft due to accidents, fire, robbery, and burglary, with compensation paid to financial institutions for the remaining lease value. We aim to drive annual sales growth to 700 million THB.", concluded Ms. Suchavadee.

Ms. Suchavadee revealed the company's performance for the first quarter of 2024. The company's total assets amounted to 13,911 million THB, with insurance premiums totaling 1,143 million THB. This represents a 13% growth compared to the same period in 2023. The distribution of premiums includes 50.09% miscellaneous insurance, 38.58% auto insurance, 11.09% fire insurance, and 0.24% marine insurance. The net profit reached 132 million THB. These figures are as of the reference March 31, 2024.

For the fiscal year 2024, KPI aims for total insurance premiums of 5,455 million THB, anticipating a 5% growth from the previous year. Looking ahead to 2027, the company projects total insurance premiums to reach 7,000 million THB.

KPI is dedicated to evolving the organization towards success in its new vision, ready to meet the needs of customers in today's era. This commitment is realized through a diverse range of products and services, underscored by the slogan "Your Trust, Our Care."