Press Release
Thai Life Insurance and CIGNA Insurance launch their partnership
Thai Life Insurance and CIGNA Insurance launch their partnership today. The first collaboration is to launch a packaged product of Thai Life’s exclusive life insurance policy and CIGNA’s PA. CIGNA Thailand will market the packaged product to its big Business Partners both FI and non-FI and offer to their customers through CIGNA’s telemarketing channel. It is a strategic initiative to expand the market for both companies leveraging their respective strengths. Also, it helps increase the product of choice for the mass market of Thai consumers.
Mr. Gary Denson, CEO & Country Manager of CIGNA Insurance PCL, said that CIGNA Thailand has close relationships with its major Business Partners, which range from the financial institutions to those in the other sectors, such as retailers and telecommunication sectors. The company has marketed its products on the affinity marketing model, offering the Personal Accident and Health Insurance products to its business partners’ customers through its strong telemarketing channel and direct marketing. Because CIGNA can not acquire a life license in Thailand, while CIGNA International globally offers basic Life, Accident, and Health products, CIGNA Thailand has been keen to strike the partnership with a leading life insurer in Thailand in order to offer an insurance plan that covers both Life and PA /Health insurance for current and future CIGNA’s Business Partners’ customers. At the present, there is an increasing demand for life and accident protection for Thai people especially when affordable and easily acquired. CIGNA Thailand is pursuing a micro-insurance strategy in support of the Office of Insurance Commission (OIC) leadership and this new partnership adds a broader product capability to CIGNA’s customers and Business Partners.
“CIGNA had been in talks with Thai Life Insurance Company to approach the company to be its business partner. Thai Life Insurance has a very strong brand in a variety of Life Insurance products and also is a very famous and secure life insurance company for many years. Therefore, CIGNA feels very enthusiastic to learn that Thai Life Insurance has agreed to become its business partner. CIGNA believes that both would grow stronger together through the partnership, which has focused on their leveraging of their own strengths to widen their market opportunity,” said Mr. Denson.
Ms. Varang Chaiyawan, Executive Vice President, Thai Life Insurance Company Limited, said that the company has seen the opportunity to expand its business channel and distribution channel in the business model proposed to the company by CIGNA. Also last year, Thai Life was the first insurance company to announce the strategy of being Insurance Convergent to synergize our all business groups and subsidiaries to bundle all products together. However, business convergent policy does not limited to only companies in Thai Life’s business group. We also have been seeking for other opportunity. Therefore, collaboration with CIGNA Thailand will expand Company’s Insurance Convergent policy through the insurance company outside our group who has expertise in their own strength.
CIGNA has been reputed of its expert in the telemarketing channel while Thai Life Insurance has it own strength in the “Customer Centric” approach. Thai Life Insurance has had comprehensive customer insight which enable Company to develop various insurance products to really meet the customers’ needs. Therefore, business collaboration between Thai Life Insurance and CIGNA Thailand can leverage our respective strengths and support to each other.
The life Insurance policies, which Thai Life Insurance offers under its partnership with CIGNA, are designed specifically for the project and are different from the policies that it has already been made available in the market offering by its agency channel.
It is the life insurance policy with the concept of the life saving plan (saving with life protection) named “Thai Tanatawee” policy. Its outstanding features are a short-term payment of premium but with a long protection period, and relatively low premium amount. The product is designed to not complicated, which is suitable to be on offer through the telemarketing channel. They are separated to be 2 plans in detail which are “Thai Tanatawee 15/5” , the policy that have life protection period 15 years with the payment period only 5 years. Guarantee cash benefit by annual base : Year 1 – 5, get 6% of sum assured while Year 6 – 14, get 9% guarantee cash benefit of sum assured. Policyholder will get 3.39 times of sum assured if maturity, and “Thai Tanatawee 18/9”, the policy that have life protection period 18 years with the payment period only 9 years. After Year 9, get 4% guarantee cash benefit of sum assured. Policyholder will get 1.14 times of sum assured if maturity. They are expected to earn an enthusiastic welcome by most Thai consumers, who are looking for the new choice of the life protection plan.
Mr. Denson added that The CIGNA Insurance PCL’s insurance plan included in this package is Personal Accident insurance Plan (PA) which gives benefits for Accidental death & dismemberment , Total Permanent Disability, Accidental Medical Reimbursement and also a Daily Hospital Income in the case of becoming inpatient from accident cause. This PA plan is designed to match with the life insurance policy to fulfill all customers’ basic protection requirements in one insurance plan. And surely it will be offered together with the life insurance policy as the one packaged product to the customers.
During the initial phase, CIGNA will market the packaged products via its telemarketing channel to a group of existing CIGNA policyholders in our own CIGNA database for a trial period of two months. Soon after CIGNA will start offering the packaged products to its Business Partners who are always seeking for new business opportunities for their customers. CIGNA Thailand and Thai Life Insurance have trained Life – licensed telesales staff to offer this packaged product. It is planned to launch its offering the packaged product to the target group next week..
Ms. Varang said that under the partnership, Thai Life Insurance has designed the life insurance products to fit well with the demand of the target groups, while CIGNA has designed the non-life insurance plan i.e. Personal Accident(PA) plan as well as marketing the packaged products and providing the after-sales service, such as the issuance of the policy to the policyholders. CIGNA will also act as the customer service center and a contact point for the policyholders of the campaign. This will provide to the customers a one -stop service point. When contacted by the customers, both partners will coordinate with each other to provide the rapid response to what the customers need.
The company has targeted the annualized premium (sales) of life insurance products of THB 20 million in the first year. Under the partnership the both partners will jointly evaluate the customer response from time to time in order to measure the success from their business collaboration. They will also continue to improve the packaged products in order to bring the best to the Thai consumers.