FWD intent on expanding market share

In the competitive Thai insurance field, an 11-year-old company has already emerged as a major player.
While the brand is not the first one Thai consumers will cite, FWD has grown substantially over the past three years, surpassing the insurance industry average in terms of both new business and overall premiums, says a top executive.
FWD Life Insurance, part of a pan-Asian life insurance business under FWD Group, reported new business surging 20% on average over the past three years, 2.5 times the annual 8% growth of the Thai insurance market during that period, said David Korunic, chief executive of FWD Life Insurance for Thailand and Cambodia.
In terms of overall premiums, the company grew 5% annually over three years, besting the industry mark of 2% for the period. FWD Life’s market share soared from 14% in 2020 to 18% now, ranking second among life insurers in the country, said Mr Korunic, citing figures from the Thai Life Assurance Association (TLAA).
“Despite the challenging and competitive environment as well as only 11 years of experience, I think we’ve made great inroads,” he told the Bangkok Post. “We are the new kid on the block that is well-positioned to thrive in this competitive market.”
Mr Korunic said the insurance industry has been somewhat flat because of the economy, growing between 0-4% over the past three years. This year, the TLAA expects growth of 2-4%.
“The industry has shown some resilience, but it is essential to acknowledge economic uncertainties persist in Thailand this year,” he said.
However, with a low penetration rate of 3%, compared with 11-12% in more developed Asian economies, the Thai insurance industry promises tremendous growth opportunities, said Mr Korunic.
He said the Thai unit is the largest company within FWD Group, representing about 35% of the group’s total business. Within the region, FWD has a presence in 10 markets, comprising Hong Kong, Macau, Thailand, Malaysia, Indonesia, the Philippines, Vietnam, Japan, Singapore and Cambodia, serving more than 13 million customers.
The company was founded in 2013 by Richard Li of Pacific Century Group after it purchased ING Group’s insurance and pension units in Hong Kong, Macau and Thailand for US$2.1 billion. Swiss Re bought a 12.3% stake in FWD Group in 2013 for $425 million.
In September 2019, FWD completed the acquisition of SCB Life Assurance and entered into a long-term bancassurance partnership with Siam Commercial Bank (SCB), representing the largest life insurance transaction in Southeast Asia.
In October 2020, the amalgamation process between FWD Life and SCB Life was completed and they become a single legal entity, known as FWD Life Insurance Public Co (FWD Insurance).
“About 12 years ago, Mr Li decided he was missing something in his company portfolio and he had a real passion for life insurance,” said Mr Korunic. “We decided to be totally pan-Asian, not going outside of the continent. If you look at us now as a group, we are the largest bancassurance operation in Southeast Asia.”
He said Mr Li’s vision was to change the way people feel about insurance.
“If you go into a Samsung shop and buy a phone, you walk out of the shop with a phone in your hand. I love this and I can use it immediately. But when you walk away from a meeting with an insurance distributor, you walk away with a promise. It’s not in your hands,” said Mr Korunic.
“You can’t feel it. It’s a promise that the company will be there in your time of need. Now that time and need, if it’s a health policy, could be tomorrow or next week. But if I bought a savings plan, it could be a 10-year period. If I bought a whole-life product, it could be 60 years in the future.”
He said FWD wants to be a different type of insurer, changing the way people feel about insurance.
“Our motto is to help people celebrate living,” said Mr Korunic.
“Insurance is one of the best industries in the world because we can actually provide peace of mind and comfort to allow people to celebrate their lives, while we support them, taking care of the rest of it.”
He said FWD has strategic pillars for the company’s achievements in Thailand, which it uses for comparisons with more established insurers.
“We’ve implemented several key strategies, such as a customer-led philosophy, digital technology that enhances the customer experience and engagement, and quality-enabled distribution,” said Mr Korunic.
Understanding and anticipating customer needs are part of the company’s DNA, he said.
“We set up our company to be customer-led and made it part of the DNA,” said Mr Korunic.
“We’re committed to providing personalised insurance solutions and building long-term customer relationships by focusing on their financial security and well-being.”
Customer feedback is accommodated in the analytics process to help design and improve products and services. Success is measured by customer satisfaction and retention rates, he said.
A study commissioned by Boston Consulting Group found digital channels can increase insurance sales by 15-20%, but Thailand’s digital transformation is still moving quite slowly, said Mr Korunic.
“Thais still like face-to-face interactions and trust a person more than an online transaction, especially for insurance. But this will change,” he said.
“Taking into account the rapid changes in customer behaviour in Thailand, FWD has been heavily investing in digital platforms to enhance the customer experience, streamline operations and offer seamless personalised services to customers.”
By leveraging technology and artificial intelligence to understand customer behaviour, FWD can tailor new products to their needs because the company better understands what they want, said Mr Korunic.
“We aim to improve accessibility and engage with our customers more effectively, so we positioned ourselves as the leader in the digital life insurance space in Thailand,” he said.
“As a result, we can provide instant claim services anytime, anywhere.”
Another strategic pillar is product innovation focused on tailoring insurance products to serve customer needs, such as a health retirement solution because Thailand has a rapidly ageing demographic, with a very low birth rate.
“By responding to the demographic shifts and evolving customer behaviours, we can offer products that better resonate with our target markets,” said Mr Korunic.
Through an exclusive partnership with SCB, FWD is the No.1 bancassurance player in Thailand with a market share of around 31%.
The company has 14,000 sales agents nationwide.
“We’re competing against more established players. These are companies that each have a very large agency force. If you go out and ask people, the first life insurance company they think of may be a company other than us because of this difference in time operating,” he said.
“We are trying to be a different brand, with a different style of insurance. I think we’re really well-positioned with our strategies and philosophies to thrive and take over more market share in Thailand.”