Allianz Ayudhya Pushes Unit-Linked Products as Rates Fall
Allianz Ayudhya is aggressively expanding unit-linked insurance products as low interest rates drive demand for long-term financial planning, with first-half premiums jumping 56% and the company targeting 45% growth for 2024.
Allianz Ayudhya Life Insurance believes the unit-linked market has renewed growth prospects, supported by demand for long-term financial planning and a low-interest environment. In the first seven months of 2024, first-year premiums through the company's agent channel jumped 56% year-on-year to 233 million baht, securing Allianz second place in the agent-channel unit-linked market. Unit-linked products now account for 14% of all new agent-channel sales, up sharply from 3–5% over the previous three to four years.
Virot Patthankamjorn, deputy managing director overseeing life and health insurance agents at Allianz Ayudhya, said the company aims for 45% growth in unit-linked business this year, targeting total sales of 688 million baht, and plans to increase licensed investment advisors from the current 1,582 to 1,800 by year-end. Strong agent capabilities are critical because unit-linked products require expertise in both life insurance and investment strategy, as well as deep understanding of client needs. Virot stressed that without knowledgeable sales teams confident in presenting complex products, business growth cannot be achieved.
Pombporn Pipattasakij, senior director of unit-linked business at Allianz Ayudhya, noted that Thailand's life insurance market has significant untapped growth potential. Average life insurance coverage per Thai person stands at around 200,000 baht—too low for adequate long-term financial security. Insurance penetration—the ratio of total premiums to GDP—sits at approximately 3.6%, well below the global average of 7% and developed-market levels of 8–11%, pointing to substantial room for expansion.
Pombporn said those figures highlight the gap and opportunity in Thai life insurance, particularly for products blending protection, investment returns, and long-term financial planning. The company believes falling interest rates will encourage consumers to seek better long-term returns, and unit-linked products—which combine life coverage with investment and allow clients to choose funds matching their risk tolerance—are well-positioned to capture that demand.
