Annual Report 2019 THANK YOU FOR TRUSTING US Do business for a better society, not for personal wealth accumulation without concern about the impact on the public. A good business must be profitable, but a line has to be drawn. Doing business with virtue means acquiring business gains without taking advantage of others. Lek Viriyabhun Founder of The Viriyah Insurance Public Company Limited VISION To be a secure, transparent, honest and fair non-life insurer MISSION To provide warm and satisfactory services From our complete and countrywide network With modern, expeditious and efficient process By our ethical and trustworthy professional teams THE VIRIYAH INSURANCE 3 Contents 02 12 14 Vision and Mission Message from Milestones of Success the Managing Director 16 18 22 Corporate Structure Board of Directors Overview of Industry in 2019 24 28 32 Business Operations and Overall Performance Well-Known Reputation Achievements in 2019 38 42 45 Good Corporate CSR Activities Report of Governance Audit Committee 46 48 101 Independent Statements Corporate Information Auditor's Report of financial position 102 104 Lines of Business Branches and Claim Service Centers 4 ANNUAL REPORT 2019 Thank You. han you for having us along every route of your ourney. Viriyah Claim Surveyors Over 1,500 Viriyah Claim Surveyors THE VIRIYAH INSURANCE 5 Thank You. han you for having us along every route of your ourney. Viriyah Claim Surveyors Over 1,500 Viriyah Claim Surveyors 6 ANNUAL REPORT 2019 Thank You. han you for your confidence in having us to tae care of your insurance needs. Viriyah Agents/ Brokers More than 9,000 Viriyah Agents/ Brokers THE VIRIYAH INSURANCE 7 Thank You. han you for your confidence in having us to tae care of your insurance needs. Viriyah Agents/ Brokers More than 9,000 Viriyah Agents/ Brokers 8 ANNUAL REPORT 2019 Thank You. han you for your trust in putting your beloved cars in our hands. Viriyah Certified Repair Shops, Authorized Dealer Repair Shops 600 Viriyah certified repair shops and authorized dealer repair shops THE VIRIYAH INSURANCE 9 Thank You. han you for your trust in putting your beloved cars in our hands. Viriyah Certified Repair Shops, Authorized Dealer Repair Shops 600 Viriyah certified repair shops and authorized dealer repair shops 10 ANNUAL REPORT 2019 Thank You han you for your trust to let us loo after your properties throughout these 73 years. Viriyah Employees More than 6,500 Viriyah Employees THE VIRIYAH INSURANCE 11 Thank You han you for your trust to let us loo after your properties throughout these 73 years. Viriyah Employees More than 6,500 Viriyah Employees 12 ANNUAL REPORT 2019 Message from Managing Director The overall Thai economy growth in 2019 suffered a decline relative to the global trade slowdown as a result of the trade war between China and the United States. Consequently, Thailand’s GDP sank to a record low in the past 5 years while the growth rate of the non-life insurance business dropped by 6.12% from the previous year due to the lower consumer purchasing power in relation to the global economy. Although the sales of The Viriyah Insurance Public Company Limited had a growth rate of only 2.6%, the company is still ranked No. 1 after holding the largest market share for 28 consecutive years. The success of the company stems from our determination to continuously improve the services and insurance practices to earn the trust of our customers and alliances. In 2019, we developed three innovations to maximize our operations as follows: • The development of Big Data and Data Driven Technology which will be a tool to help the company understand and meet the needs of the customers and partners more efficiently • The development of technology for partner connectivity through the Application Programming Interface (API) which helps the company to get more connection and access to its target group through business alliances or partners quickly • The development of technology for Claims Services which is a perfect solution to facilitate our customers; for example, they can file a claim via a video call to reduce the vehicle damage inspection time The company’s operations in 2020 are likely to experience great challenges and some fluctuation from the impact of COVID-19 on the global economy and industry. Since the exact course of this pandemic is difficult to predict, the company needs to keep up with the situation and find ways to quickly adapt itself to mitigate this critical impact. THE VIRIYAH INSURANCE 13 One of them is to ensure efficient and flexible operations by implementing the decentralization policy and maintain integrity in all sectors across the society. In addition, we are determined to develop proper technology in the digital era and meet the needs of the customers so that they can get access to our service quickly, accurately, and fairly. On behalf of the Board of The Viriyah Insurance Public Company Limited, I would like to thank the customers, agents, brokers, and alliances in every sector for your continuous trust in the company as your insurance provider. I would also like to extend our appreciation to all the executives and employees who are the important force that helps create new things and drive our business in a steady growth. The Company will continue to follow the code of conduct and corporate governance policy that is in accordance with our “Fairness is Our Policy” principle so that we can remain to be the insurance choice for Thai people and society as always. The Company will continue to follow the code of conduct and corporate governance policy that is in accordance with our “Fairness is Our Policy” (Ms. Suvaporn Thongthew) Managing Director 14 ANNUAL REPORT 2019 Milestones of Success 1947 1974 1979 1982 February 3, 1947 January 14, 1974 January 16, 1979 February 22, 1982 Million baht The title of Car Insurance Professional paid-up the Company non-life Insurer 5 capital was changed to “Asiatic To become a professional Distributing non-life insurer, Insurance Miscellaneous the company was retitled Fire Insurance Company Insurance once again to be Limited.” “The Viriyah Insurance Co., Ltd.” Ever since, The company expanded the business has gained its insurance business to the acceptance and trust include car insurance and of the Thai people all along. Marine And miscellaneous insurance Cargo Insurance in order to serve the growing Thai economy and ensure the security of Thai people The Viriyah Insurance and communities. Public Company Limited The company was then was founded under the retitled to “Viriyah Panich "Viriyah name Asiatic Distributing Insurance Company Limited.” Insurance Company Limited with Co., Ltd.” 5 million Baht paid-up capital. At the beginning, the company offered two major insurance classes: fire insurance and marine and cargo insurance to support the business of Thonburi Automotive Assembly Plant Co., Ltd. –another family business. THE VIRIYAH INSURANCE 15 1987 1992 2012 AT PRESENT June 1, 2012 No. 1 No. 1 Totaled 38,896Million Baht Position in the Non-life Become car insurance insurance a public company business company The year of pride, The company once To become a public Representing the Company had again achieved great company limited under become the number success in the non-life the title “The Viriyah one position in the car insurance business with Insurance Public 15.80 % insurance industry the top ranked position Company Limited”, with of the non-life for the first time. in the entire non-life emphasis on being the insurance industry This position has insurance market. leading non-life insurance been maintained The company has company known for The Viriyah Insurance Public until the present day. maintained this market stability, strength, good Company Limited is Thailand's leadership until today. corporate governance, number one non-life insurance transparency and company that has operated fairness in its business constantly for 73 years. operations. The Company has gained the trust of customers and our market share has ranked 1st for 28 consecutive years. Our direct insurance premiums for the year 2019 totaled 38,896 million Baht, representing 15.80% of the non-life insurance industry. In the year 2019 our market share has ranked 7th with the total volume of direct non-motor insurance premiums at 4,078 million Baht. 16 ANNUAL REPORT 2019 Corporate Structure Board of Directors Investment Committee Product and Underwriting Development Committee Claim Settlement Committee IT Steering Committee Managing Director Reinsurance Committee Corporate Advisory Panel Office of Managing Director Personnel Department Operation Operation Business Group 1 Group 2 Development 1 THE VIRIYAH INSURANCE 17 Risk Management Committee Audit Committee Internal Audit Compliance Department Department Risk Management Division Business Business Control Support Development 2 Development 3 Group Group 18 ANNUAL REPORT 2019 Board of Directors and Executive Managements Board of Directors Specific Purpose Committees Audit Committee Chairperson of the Board of Director Ms. Orabhun Bhongbhibhat Chairperson of the Audit Committee Directors Mr. Chumlong Reanvichit Ms. Suvaporn Thongthew Member Ms. Nonglak Sundaravara Mr. Took Viriyahbhun Mr. Somchai Sawathanuphap Mr. Pichan Viriyahbhun Ms. Nataya Lothuvachai Pol.Lt.Gen. Powthai Thongthew Mr. Surapol Lertprasertkul Mr. Amorn Thongthew Mr. Prasan Nilmanat Mr. Somchai Sawathanuphap Investment Committee Mr. Boonlert Kusolpermpool Ms. Rubporn Viriyahbhun Chairperson of the Investment Committee Mr. Thongchai Jira-alongkorn Independent Directors Mr. Suthin Nophaket Member Mr. Chumlong Reanvichit Ms. Suthathip Vorakul Mr. Surapol Lertprasertkul Ms. Nujchanart Laohathaimongkol Ms. Nataya Lothuvachai Mr. Sitthichoke Sricharoen Product and Underwriting Risk Management Committee Development Committee Chairperson of the Risk Management Chairperson of the Product Committee and Underwriting Development Committee Ms. Supatra Thongkhao Ms. Bang-orn Jiravorasuk Member Member Mr. Amorn Thongthew Mr. Winju Angsunit Ms. Nujchanart Laohathaimongkol Ms. Wilai Prechaporn Ms. Bang-orn Jiravorasuk Mr. Suthep Radchaauppanan Mr.