Mitsui Sumitomo Insurance Co., Ltd. is focusing on Chinese nationals in Thailand through a recent bancassurance partnership. The deal, signed in May, involves MSIG Insurance (Thailand) Public Co. Ltd. (MSIG Thailand) and Mitsui Sumitomo Insurance Thailand Branch (MSITB) collaborating with Bank of China (Thai) Public Co. Ltd. (BOC Thai) and China Pacific Insurance (CPIC).
Key Details of the Partnership
The partnership aims to serve the growing number of Chinese students traveling between Thailand and China. According to Rattapol Gitisakchaiyakul, CEO at MSIG Thailand, “We see a real opportunity to better serve the growing number of students travelling between Thailand and China.” The insurers plan to use data and insights into the travel habits, preferences, and behaviors of Chinese nationals to tailor insurance plans.
Growing Chinese Presence in Thailand
Chinese students almost doubled to over 28,000 last year from 2020, accounting for 53% of foreign students in Thai universities. Investment promotion applications surged 40% to 3,137 last year. Foreign direct investment (FDI) accounted for 73% of the total 2024 application value, rising 25% year on year. China was the second-largest source of FDI, with 810 projects worth $5.4 billion.
Insurance Opportunities and Challenges
Shingo Adachi, senior vice president at MSITB, highlighted opportunities in catastrophe insurance and the growing demand for retirement coverage. He noted that the risk landscape is becoming increasingly complex and dynamic, citing earthquakes as an example of a previously perceived low risk that now requires more attention.
Rattapol emphasized the role of technology in transforming customer service, stating, “Technology is moving fast, and it’s going to continue transforming how we serve customers, especially through data and digital tools that allow for more personalised and efficient service.”
The bancassurance deal will also enable MSIG and MSITB to sell insurance to BOC Thai’s corporate clients, providing a comprehensive range of insurance solutions.
