Direct Sales of Insurance in Thailand Claim Big Success Through Credit Cards.

Dec. 6--Buying insurance products from sales agents can be an irksome experience and many deals are closed without mutual satisfaction.

The pushy sales style of agents usually gives clients no time or opportunity to examine policy terms thoroughly and such negligence might adversely affect the industry eventually.

As a result, direct sales, especially to holders of credit cards, has emerged as an increasingly popular channel for insurance products. But few can claim the success through the channel that Ayudhya Allianz C.P. Life (AACP) has enjoyed, with earnings of about 150 million baht this year.

According to Wichit Phayahanaveechai, chief marketing officer, many insurance companies offer direct-sales marketing but only a few have pursued it seriously. "We see the market is huge, considering the customer base -- the number of card members which is growing significantly," he said.

The number of credit card holders was 2.4 million last year and is expected to double by the end of this year, due to the reduction of the minimum income requirement for applicants to 7,500 baht a month. The figure was recently raised to 15,000 baht but the market is still considered massive for AACP.

Mr Wichit said the company started to sell insurance through the credit card channel in 1999. It earned 36 million baht from the channel in the following year, which rose to 47 million baht last year. Next year's figure is projected at 300 million.

The company gained 40,000 customers from direct marketing and 300,000 who took advantage of a one-year free coverage offer. These customers are among the two million cardmembers of banks ...