In an exclusive interview, TQM Alpha’s leadership outlines the company’s transformation, investment strategy, and vision for the future as it expands its reach and diversifies its portfolio in the Thai insurance market.

Founded over 71 years ago, TQM Alpha has grown from a small family-run business in Bangkok’s Chinatown to Thailand’s leading insurance broker. The company’s journey has been defined by strategic investments in technology, a shift towards an asset-light model, and a relentless focus on customer service. From overcoming the challenges of the 1997 Tom Yum Kung crisis to expanding its services into the financial sector, TQM’s leadership has embraced change at every turn. Now, with ambitious plans for product diversification and a target of THB 50 billion in premiums by 2027, TQM Alpha is poised to solidify its position as a key player in Thailand’s evolving insurance landscape.

TQM has undergone significant growth over the years. Could you walk us through the key milestones in the company’s history, especially its transformation into TQM Alpha in 2022?

TQM’s journey started over 71 years ago. We started as a small, family-run business, primarily serving customers in shophouses located in the vibrant Chinatown area. Our focus was on providing non-life insurance through traditional, face-to-face interactions, building personal connections with our clients. The business truly started evolving in 1997 during the Tom Yum Kung crisis, as we refocused on insurance, recognising the value of mobile telecommunication technology that was just emerging in Thailand. This shift allowed us to move from face-to-face interactions to telemarketing, enabling us to expand our reach significantly.

Investments in technology, such as a state-of-the-art call centre 20 years ago, proved transformative. At that time, we invested THB 200 million into this infrastructure, which allowed us to scale up from a local presence to the largest insurance broker in Thailand. By expanding strategically and building trust through an omnichannel approach—offering digital, telephone and face-to-face services—we’ve become the leader in Thailand’s insurance industry.

In addition to the insurance broker business, the company has expanded into the financial services sector, beginning with loan services for insurance premium provided through Easy Lending Company. This initiative focuses on catering specifically to TQM’s existing customers, with a primary emphasis on loans for insurance purchases. This entry into the financial services market reflects the company’s recognition of opportunities to meet the diverse needs of customers beyond insurance services. Moreover, it helps to strengthen long-term relationships with customers, ensuring their continued engagement with TQM.

TQM uses an asset-light model and covers over 5,000 service points, along with an additional 6,000+ points through partnerships. How does this model give you a competitive advantage in the insurance broker market?

Twenty years ago, we expanded our branches to be present nationwide, because with insurance, trust is important. Customers need to know that we are available 24/7 in person or on the phone and today online. A decade ago, as technology progressed, and financial institutions in Thailand reducing their branch network, we focused investing into digital technology systems thereby pivoting towards today’s asset-light model. It allows us to maintain a high level of customer service while controlling costs effectively. This investment in our digital infrastructure proved to be fortuitous during the Covid period as our team could quickly shift to working from home and through our online systems, efficiently and effectively providing the best service possible to our customers. Further, instead of expanding through physical branches, we partnered with service providers via an acquisition of My Group Intelligent thereby incorporating MySafe and ShipPop outlets into our network. This collaboration significantly expanded our reach, adding thousands of accessible service points across Thailand, transitioning from fixed to variable costs and enhancing overall efficiency and flexibility. Finally, it reinforces our “high-tech, high-touch” approach – leveraging technology and personal interactions to build trust with our customers.

With your strong market presence in both non-life and life insurance segments, how do you see TQM’s role evolving in the Thai insurance landscape?

We see ourselves as not just an insurance broker but as a trusted partner for our customers. With Thailand’s relatively low insurance penetration, we have a huge opportunity to grow, particularly in life insurance. We are positioning ourselves to support the evolving needs of Thai consumers and expanding into health and life insurance as well, given the aging population and rising healthcare costs. Due to our approach of being a trusted partner, motor insurance, the largest portion of our portfolio has experienced strong organic growth despite the slowdown in Thailand’s automotive market. This is due to high renewal rates and our ability to tap into lower-penetrated markets, such as older vehicles, thereby allowing us to attract new customers and further expand our customer base.                    

TQM’s motor insurance portfolio makes up 77% of its total non-life insurance premium. How do you plan to diversify the portfolio into other product lines?

Motor insurance is certainly our stronghold, but we’re actively working on diversifying our portfolio. We’re expanding into life and health insurance and investing in new technology platforms that support product diversity. While technology and advanced customer data analytics enable us to identify opportunities for cross-selling and upselling, our extensive experience and deep understanding of customer needs remain at the core of our approach.

By leveraging decades of expertise in customer care, we ensure that every product we develop is not only innovative but also genuinely beneficial and tailored to our customers’ unique circumstances. Our commitment to a customer-centric philosophy drives us to create solutions that add value to their lives, providing them with peace of mind and financial security. The insurance industry grows at a multiple of GDP, and for 2025 the OIC expects a growth rate of +3.9%, reinforcing the importance of putting customers at the heart of every decision we make.

Regarding our product expansion, it is into the life insurance segment as evidenced by our recent M&A with True Life. It is a strong player in selling life insurance for government employees and combined with our own sales team focused on group life insurance solutions for companies and with support from TQC, our subsidiary operating consultancy and claim services for health services, our sales team is well prepared to actively engage in this market and grow our presence in life insurance.

The company is expanding its platform through investments and M&A. Could you elaborate on the strategic importance of these investments, such as My Group Intelligent and Ngern Rueang Jib?

These investments help us build a comprehensive insurance platform, enhancing both customer experience and operational efficiency. My Group Intelligent, for instance, strengthens our distribution channels and expands access to customers, while Ngern Rueang Jib is part of our move into the financial services sector, specifically the low-risk secured loan market. These strategic investments align with our commitment to achieve both a diversified portfolio and opening new opportunities for growth.

TQM has been quite active in M&A. What are your criteria for selecting M&A targets, and how do you ensure these investments align with your long-term goals?

We look for companies that align with our business model and can add value to our platform, whether in customer reach, technology, or services. We are particularly interested in companies within the insurance and financial sectors, focusing on those that can enhance our customer experience or extend our market reach. Each M&A target is carefully evaluated to ensure it supports our long-term growth and strengthens our position in the market.

How is TQM leveraging AI and data analytics to enhance customer experience and improve operational efficiency?

Ensuring customer satisfaction is of the utmost importance to us. A customer cannot control when an accident happens, or when a family member passes, they need to know that we are available 24/7 to assist them in all matters. Because of our high level of service quality, we have a very high retention rate. With the advent of AI and data, we began integrating AI into our operations over the past 7 years, focusing on areas like customer segmentation, and claims management. AI benefits are evident for us as it allows for more effective analysis of customer data, providing personalised product recommendations and streamlining processes. This enhances operational efficiency by automating repetitive tasks, completing them in a fraction of the time, and enabling us to focus resources on strategic activities. While AI implementation is ongoing, we’re already seeing significant improvements in customer experience through more precise targeting and faster service. We not only enhance our capabilities as an organisation but also ensure that our customers gain value in the form of greater convenience, improved product relevance, and an overall better experience. This symbiotic approach strengthens trust and fosters long-term relationships with our customers.

TQM serves over 3.5 million customers. How do you plan to increase customer engagement and cross-sell other products, such as financial services and loans?

Our goal is to build lifelong relationships with our customers. We focus on understanding our customers’ needs at each stage of their lives, allowing us to offer relevant products over time. For example, our customers typically start with motor insurance, and over time, we introduce life, health, and even financial products, tailoring our offerings to fit their evolving needs. By utilising our omnichannel approach—tele-sales, digital channels, and physical service points—we can engage customers through their preferred channels, increasing engagement and satisfaction. This strategy centres on creating comprehensive financial solutions for each customer rather than one-off sales.

One of TQM’s stated goals is to reach THB 50 billion in premiums by 2027. What strategies are in place to achieve this, and how confident are you in hitting this target?

Reaching THB 50 billion in premiums is an ambitious target, but we’re confident we’ll get there. Our strategy includes continued M&A activity, expanding our product offerings, and tapping into underserved markets in Thailand. A key pillar of our approach is product innovation, which helps us differentiate ourselves in the market. By developing cutting-edge insurance solutions tailored to emerging customer needs, we are ensuring that our offerings stand out and remain relevant in a competitive industry.

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Optiwise conducted the interview to provide insight into the foundational business strategies from the perspective of a leading executive at a Thai-listed company, for promotional purposes.

Link: Bangkok Post – TQM Alpha’s Evolution: Innovation and Strategic Growth