In a bold commitment to the evolving electric vehicle (EV) insurance market, Akson Insurance Public Company Limited (Mahachon) has signaled its focus on growth despite encountering challenges. CEO Mr. Kilayom Mirabo outlined the company’s engagement in this sector during a recent presentation, acknowledging that the loss ratio for EV insurance has been notably high. This high ratio, which reflects the ratio of claims paid to premiums earned, poses challenges but also opens the door for significant opportunities within a market increasingly driven by the trend towards EVs.
Mr. Mirabo elaborated, "Even though the loss ratio may be high, we cannot ignore the EV sector. It's undeniable that electric vehicles are the future, and we must adapt to this trend. While we’ve observed that the brands leading to more accidents are only a select few, our data collection will enhance our risk assessment precision going forward." This proactive approach indicates not only the necessity but also the potential profitability that could arise once the market matures.
Entering the EV insurance market serves not only as a business strategy but allows Akson to gather essential statistics for enhancing risk evaluation. Previously, the data available for assessing risks associated with EVs was insufficient, limiting accurate predictions in this still-nascent sector. Mr. Mirabo emphasized that the challenge ahead is directly linked to the existing market dynamics, explaining, “In the current landscape, some sellers offer compelling prices, which results in lower premiums.” Ultimately, the ability to navigate these competitive pressures will be key for the firm's strategy.
When discussing the broader implications, Mr. Mirabo pointed out that Akson Insurance aims to be a staple in improving public awareness of the importance of insurance, especially in light of escalating climate change risks impacting the frequency and severity of natural disasters. “Natural disasters are happening in areas that previously had low risk profiles, leading us to promote property insurance as a vital cushion against such unpredictable events," he noted.
The company has ambitious expectations for its growth trajectory, as illustrated by its recent performance in 2024, where Akson Insurance reported total gross written premiums (GWP) of 6,454 million baht, marking an impressive increase from 5,715 million baht in 2023. This translates to a year-on-year growth rate of 12.9%, significantly outpacing the overall insurance market’s modest growth of only 0.5%.
A CEO perspective on these figures highlights the importance of customer-centric operational strategies, coupled with an aggressive approach to portfolio diversification. As a result, Akson Insurance has ascended to rankings, now sitting at 14th in the market with a 2.3% market share, compared to its previous ranking of 22nd, a jump that demonstrates the effectiveness of its strategies.
Mr. Mirabo stated, “Our commitment to customer needs and proactive product development is paying dividends, manifesting in robust growth. We recognize that we must continue our focus on innovation and cater to the evolving landscape of insurance needs across various demographics.” This not only includes the vitality of vehicle insurance—which accounts for 53% of the company’s portfolio—but also encompasses health insurance, which commands 22% of the overall GWP, establishing Akson as a significant player in this segment.
The company’s future looks equally promising, especially as it is preparing to launch new product offerings targeted toward both individual consumers and businesses. Within the next few months, Akson aims to introduce the Smart Traveller's Choice policy aimed at enhancing the insurance experience for travelers. Mr. Mirabo remarked, “We want our products to reflect the diverse needs of the market, ensuring that every consumer, whether personal or business-related, finds a suitable option that meets their demands.”
Furthermore, with climate change firmly on the agenda, Akson Insurance is poised to advocate awareness and adaptation strategies among the population. Furthermore, the company acknowledges that the threat posed by climate change necessitates urgent action in the insurance field to mitigate risks and protect vulnerable communities.
As it moves forward, Akson Insurance’s strategic focus is on expanding its presence while enhancing the customer experience. Its significant engagement in the emerging EV insurance market alongside traditional sectors reflects a well-rounded approach aimed at capturing diverse customer needs while contributing positively to the broader public understanding of the necessity for insurance.
In conclusion, Akson Insurance is not just responding to trends but proactively stepping into a future that is likely to see a dramatic increase in the number of electric vehicles on the roads. As they continue to gather data and refine their offerings, they’re positioned well to transform challenges into opportunities, marking them as a pivotal player in Thailand’s insurance landscape.
