Details of TNI’s revenue structure for the past 3 years were as follows: Income Structure 2021 2020 2019 Insurance Business (Direct Premiums) 8,334 8,682 8,368 Auto 7,146 7,419 7,048 Fire 69 79 72 Miscellaneous 1,119 1,184 1,248 Invenstment Business (Investment Income) 144 103 1,016 (Unit: Million Baht) Market and Competition In 2021, the COVID-19 pandemic remained severe globally and also in Thailand. There was a new wave of virus transmission since the latter part of March last year. As the pandemic spread widely in the region, the COVID-19 insurance registered significant growth. Overall, the non-life insurance business in 2021 achieved continuous growth at about 5.2 percent, when compared with the same period in the previous year, with the direct premium received amounting to about 265,849 million baht. In this connection, auto insurance which accounted for the majority of the non-life insurance increased by 2.1 percent, reflecting the decline in car sales during the COVID-19 outbreak in the past two years, which was mainly due to the government’s announcement of the lockdown and curfew measures as well as economic contraction. With regard to the overall performance of the non-life industry as at the end of 2021, losses from COVID-19 policies amounted to 24,000 million baht. This was mainly due to the rapid spread of the virus transmission as well as emergence of fast-spreading new virus variant in the latter part of the year. As a result, the non-life insurers which sold COVID-19 policies had to make substantial payments in claims. This had adverse impacts on the financial liquidity and stability of several non-life insurers. As regards TNI, it was slightly affected by the situations. The company’s performance remained strong despite the unpleasant economic conditions. This was mainly due to its policy to exercise caution on underwriting. Thanks to its risk management process, TNI’s board of directors made the right assessment of the risk and focused on selling insurance products in which it had expertise in order to expand the market share. Noteworthy was its automobile insurance which accounted for 86 percent of its sales revenue while its other insurance products accounted for the remaining 14 percent. TNI was able to successfully control and managed insurance claims, keeping them at 52 percent. Marketing of key products and services TNI continuously emphasized on market segmentation. It recognized the rapid changes of consumer behavior. Each group of customers had different needs. To assess and gain insights into customer needs, TNI used modern information technology tools for more efficient assessment. As a result, it was able to deliver good experience to customers. Emphasis was placed on providing customers with the best impression possible on both products and 34
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