Resolving abandonment and lack of policy before the expiration of the contract in life insurance products (BAAC PERMRAK 12/10) problems

Abstract

This study is entitled “Resolving abandonment and lack of policy before the expiration of the contract in life insurance products (BAAC PERMRAK 12/10) problems”. The objective of this study was to address the issue of customer abandonment or lack of policy before the expiration of the contract by collecting data from 336 copies of questionnaires and interviews with chief financial officers from three branches. From collecting data from the BAAC PERMRAK 12/10 policy expiration monitoring report, it was found that the number of unenforceable policies without renewal increased every accounting year. According to the study, the main reason is that customers want to reduce household expenses the most. It was followed by customers who want to use insurance premiums to spend on family and daily life to pay off loan interest. Some customers hold multiple policies in order to reduce the number of policies to just one main policy and reduce total expenses that may be caused by factors such as debt burden from loans, unstable economic conditions, and weather conditions that result in agricultural crops deteriorating and being damaged. This leads to lower income for customers, which is the main reason why customers cancel and fail to submit their policy before the contract expires. Based on the information obtained from the study, the students chose the resolving method by reducing the monthly allowance rate to as low as 100 baht per month as the minimum monthly allowance rate to help reduce the burden of expenses within the customer's family. With the low monthly allowance rate, they can deliver continuity without burden, which allows employees to offer life insurance products at a monthly allowance rate that customers can remit in the long term until the expiration of the contract without affecting family expenses. This increased the number of policies, including access to life insurance collateral and net income, and net income has increased at the specified rate.