“Ngern Tidlor's insurance brokerage business is poised to emerge as a prominent frontrunner in Thailand's retail insurance sector. Our growth trajectory will persist, propelled by our inherent strengths and fortified by our extensive experience in enhancing our insurance sales system.”
This excerpt comprises a letter from Mrs. Athitaya Phoonwathu, Chief Insurance Officer, that was originally shared with shareholders in 2021. Today, this letter's essence continues to serve as a fundamental guiding principle in the ongoing operations of TIDLOR Insurance Broker.
This edition of TIDLOR Story aims to expound on the content of this letter, specifically for individuals who may not be acquainted with TIDLOR Insurance Broker. Our aim is to provide insight into the underlying intentions that started the business. By sharing stories of our past growth and the development of trust, we hope to convey the path that TIDLOR Insurance Broker is charting as we embark on our collective journey into the future.
Beginnings and Challenges
Mrs. Athitaya's letter commences by revisiting the driving force behind Ngern Tidlor's venture into the insurance brokerage industry: the sincere aspiration to provide customers with accessible insurance opportunities.
“When it comes to the crucial aspects of financial services, our belief goes far beyond simply providing loans. We understand the immense value of insurance services, especially for the clientele of Tidlor Insurance Broker. We are committed to providing them with avenues to alleviate the financial burdens that may arise from unforeseen risks that could jeopardize the assets they depend on for their livelihoods. It is with this deep understanding that we have made the strategic decision to launch an insurance business.”
In 2013, Ngern Tidlor applied for a corporate insurance brokerage license. However, due to challenges with the team and limited understanding of the insurance business, we had to work hard to prepare ourselves and earnestly drive the insurance business starting in 2016.
“In 2016, we made thorough preparations for the insurance business. This involved building both front-office and back-office teams, as well as creating a motor insurance sales system for implementation at branches. As a result, we experienced exponential growth. In 2016, our insurance premiums amounted to just over 200 million baht. However, by the end of 2021, our premiums reached 5,248 billion baht, with a total of 1,085,340 policies. This growth has positioned us as the second-largest insurance broker in terms of serving retail customers. Notably, 90% of our customers were new customers who specifically chose to purchase motor insurance from us, while only 10% were our existing loan customers who also bought insurance.
One of the challenges we encountered initially was to ensure that our current loan officers acquired the requisite insurance broker licenses. Accomplishing this demanded extensive training and meeting rigorous criteria, which proved to be a formidable task. Nevertheless, we attached great importance to this aspect because we firmly believed that prior to suggesting appropriate insurance options and elucidating policy terms to customers, our staff members must possess comprehensive knowledge, understanding, and, above all, demonstrate ethical conduct. This approach would foster confidence and trust in the transparent services we deliver to our valued customers.
Currently, TIDLOR Insurance Broker has over 1,628 branches and more than 5,000 licensed life and non-life insurance brokers, which surpasses other similar businesses in scale and magnitude. Furthermore, we have established a dedicated Helpdesk team that operates 24/7 to coordinate customer assistance in case of any issues or concerns after purchasing insurance. This key factor significantly contributes to fostering customer loyalty, as they repeatedly choose us for their insurance needs in the years to come.”
Customer-Centric Growth and Leveraging Partners for Success
The experience gained from entering the insurance business has led Ngern Tidlor to better understand the essential requirements of our customers, encompassing their needs for knowledge, comprehension of insurance intricacies, and the advantages insurance brings, alongside their accessibility to suitable insurance plans. This profound understanding has prompted the inception of the "Free Accident Insurance for Motorcycle Loan Customers" initiative. Mrs. Athitaya highlights the rationale behind targeting this particular customer segment:
“The majority of our motorcycle loan customers consist of riders who heavily rely on motorcycles for their livelihoods, thereby facing an increased risk of accident. In the unfortunate event of an accident, these customers are entitled to compensation that aids them in mitigating the financial implications resulting from a loss of income. Furthermore, this initiative extends its support and lightens the burden on their families.
We started the giveaway of accident insurance policies in 2015, and up until April 30, 2023, we have given away a total of 1,709,887 complimentary accident insurance policies, and have issued 232,588,397 baht in claims.”
Customers who own cars are equally valued by TIDLOR Insurance Broker
“We understand and recognize that customers who use cars for their profession have a strong need to purchase the most comprehensive and suitable motor insurance coverage. With the first-class motor insurance premiums averaging at around 17,000 baht per year, this is a significant expense. To address this, in 2017, we introduced an opportunity for customers to finance their motor insurance with us at 0% interest, for up to 6 installments, without any service fees or credit card requirements. We believe we were the first to initiate this 0% insurance financing program. After the launch of our first advertisement, announcing our insurance products and the option to finance without interest, we received an overwhelmingly positive response. We witnessed remarkable growth in insurance sales, surpassing expectations, and subsequently inspired other companies to also offer 0% insurance financing with cash.”
Embarking on new ventures in the industry is no easy task, yet the past successes of our motor insurance endeavors demonstrate that replicating success is indeed possible. One of the factors behind that success is the presence of insurance partners who not only comprehend but also embrace our shared vision, collaborating towards a unified goal.
“We have fostered exceptional collaboration and received unwavering support from all 19 of our partner insurers since the beginning of our insurance business. Together, we have embarked on a journey of continuous improvement, exchanging experiences, and collectively developing systems. Our purpose has always been to align our partners' understanding and objectives with our own. In pursuit of this, we have extended invitations for joint meetings, providing our partners with invaluable insights into the WHY and HOW of our business operations and organizational culture. As an insurance brokerage, we proactively gather significant information from our partner insurers, enabling us to analyze and comprehend the factors contributing to various risks. These constructive dialogues pave the way for mutually beneficial opportunities and sustainable growth.”
Leverage technology to develop systems and create more opportunities.
“In the early years, we had to work hard to learn the factors that determined insurance premiums and other information required by underwriters. We are grateful to our partner insurers for their patience and cooperation in jointly developing the system with us. On April 24, 2017, we implemented our own insurance sales system at over 400 branches we had at that time. This system encompassed the quotation process, sales, sales operations management, and the 0% cash installment program for motor insurance. In the initial phase of implementing this system, we faced a multitude of challenges. However, our front-office and system development teams united their efforts, working tirelessly even on holidays, to overcome these obstacles. Together, we strived for constant improvement, seamlessly integrating the system with other interfaces, and bolstering support for our expanding business. This collaborative approach allowed us to broaden our sales channels through Telesales, Mobile Application, and Independent Agents (Areegator). As a result, we have been consistently enhancing the customer experience on a daily basis. ”
Tidlor Insurance Broker adopts a business approach that prioritizes both its own growth and that of society. With this in mind, Tidlor Insurance Broker has embraced a concept that facilitates the growth of retail insurance brokers, aligning it with the company's expansion. Mrs. Athitaya expressed this perspective in her letter by stating:
“In the middle of 2020, we introduced the "Areegator," an online insurance sales platform, expanding upon our existing insurance sales system at Ngern Tidlor branches. This expansion was a strategic move to increase our business presence by collaborating with retail insurance brokers nationwide, understanding the challenges they face when presenting and selling insurance. We aim to provide retail brokers with the opportunity to conveniently utilize our insurance sales management system through smartphones, tablets, or personal computers. This initiative offers them a way to increase their income by accessing leading insurance companies' policies through our "Areegator" platform. Brokers can compare insurance premiums and coverage using our developed system. Moreover, they can present their customers with options for interest-free installment payments for motor insurance in cash. Since the initial launch of the "Areegator" platform for trial use by brokers, we have observed a consistent growth in new memberships as brokers apply and grow alongside us on a daily basis. ”
Daily Opportunities to learn and progress toward sustainable growth.
In 2021, amidst the challenges posed by the COVID-19 pandemic, Tidlor Insurance Broker achieved remarkable growth of 25%, surpassing the overall market growth of 3-5%. This outstanding performance can be attributed to our visionary approach and agile business strategies that embrace changes. It exemplifies the ongoing and sustainable success of Tidlor Insurance Broker. Mrs. Athitaya expounded on the rationale behind our commitment to create greater opportunities for customers to purchase motor insurance:
“On October 1, 2021, we launched the "Tidlor Insurance without Credit Card" initiative, extending the motor insurance premium installment period to 10 months with 0% interest, compared to the previous 6-month period. This aimed to provide financial relief to our customers and generated significant interest. Additionally, in mid-2021, we introduced a family accident insurance plan, allowing customers to make installment payments at 0% interest along with the motor insurance.”
Mrs. Athitaya concludes in the final portion of her letter, the next step for Tidlor Insurance Broker:
“Our past experiences in establishing the insurance company have instilled a deep sense of enthusiasm for the vast potential within the insurance industry. With our growing customer base, we are well-positioned to leverage data analysis and collaborate with insurers to design specialized insurance products that cater to the unique risks faced by diverse customer segments and assets. These opportunities allow us to provide customers with convenient access to insurance, alleviate financial burdens through installment options, streamline the purchasing process, and offer transparent advice and post-sales support. This unwavering commitment serves as the driving force behind our business operations. Additionally, in the future, we will remain committed to leveraging data analysis to develop innovations and adopting relevant technologies to enhance our systems. This commitment aims to empower our customers, Ngern Tidlor branch employees, and retail insurance brokers by providing them with a seamless and user-friendly insurance sales system. We also strive to enhance our comprehensive services, offering valuable advice on a range of topics and delivering exceptional post-sales assistance. At the same time, we will continue our efforts to develop a robust and sustainable system that prepares us for future expansion in the insurance industry. This involves not only our operations within Ngern Tidlor Public Company Limited, but also exploring external opportunities, including partnerships with fellow insurance brokers who can leverage our system to grow alongside us in the years to come.”
This excerpt is derived from a letter composed by the management of Tidlor Insurance Broker, expressing our sincere and determined approach to business, with the goal of setting new industry benchmarks through the application of technology and innovation. It is important to emphasize our commitment to understanding the needs of our customers, which has resulted in past successes and currently positions us as the second-largest player in the market. With a mindset of continuous learning and the courage to embrace trial-and-error, these factors will drive Tidlor Insurance Broker towards sustainable growth, establishing our leadership position in the industry for the future.
Read the full letter here, page 202-204