Riding the wave of digital revolution in the insurance sector, Roojai, a prominent online insurance firm, is on the brink of declaring its inaugural profit from Thai operation for the fiscal year concluding in March 2024. Nicolas Faquet, the architect and the driving force behind Roojai, attributes this major accomplishment primarily to the considerable growth witnessed in motor insurance sales. Evidently, the company has set a targets to become one of the top 10 contenders in motor insurance by the next year.
Faquet revealed the company’s journey in the past few years, riddled with obstacles and challenges, most notably those imposed by the global Covid-19 pandemic. However, he stands firm in his belief that current dynamics in the vehicle insurance sector indicate a promising future.
In the fiscal year ending in March 2022, Roojai added a whopping 149,248 customers, representing a year-on-year increase of 15%. Faquet acknowledged that this growth rate is fair, despite being slower than past years. The firm’s insurance premiums for the same period amounted to a colossal 133 billion baht, marking a robust 20% increase, with motor insurance constituting a significant 95% chunk. The residual earnings came from accident and health products.
As part of a forward-thinking strategy, Roojai seized an opportunity to acquire FWD General Insurance (FWD GI) in July this year, although the monetary details remain undisclosed. With this transaction, Roojai managed to add more weight to its portfolio within Thailand, pushing its annual premium over the US$50 million (1.8 billion baht) mark.
Roojai’s strategic acquisition of FWD GI has catalyzed a crucial evolution, enabling the firm to operate as a full-stack insurtech. Now, it holds a license to underwrite its own general insurance products. This acquisition has also opened doors for new distribution channels involving brokers and agents, according to the Bangkok Post.
By banking on more conventional distribution strategies, Roojai aims to infiltrate markets beyond the major cities of Bangkok, Chiang Mai, Chon Buri, and Phuket, which presently contribute approximately 70% to the total sales. Meanwhile, sales from other provinces add 30% to the revenue pie.
Going forward, Roojai is excited to announce several new products shortly, extending its reach beyond motor insurance and personal accident coverage. These include telematics and home insurance. Personal medical insurance and insurance products for small and medium-sized enterprises are also in the pipeline for a 2025 launch.
Faquet expressed his optimism about Roojai’s future, projecting a 40% growth to conclude 2024 fiscal. This true to the 35% increase in policies recorded in the five months preceding the FWD GI acquisition. Nevertheless, some FWD GI products will be discontinued due to misalignment with Roojai’s business strategy. These include phone device insurance and commercial risk insurance, covering areas such as marine or factory fire incidents.
As implied by Faquet, Roojai has big aspirations, aiming to ascend to the rank of the top 10 Thai motor insurers by the next fiscal year and then to break into the top three in the following five years. The US$42 million (1.5 billion baht) Series B fundraising, concluded in March, was utilized towards the FWD GI acquisition, for organic expansion in Roojai Indonesia, and to explore new avenues in four other Southeast Asian markets and Taiwan.
Looking at the future, Faquet has hinted at the possibility of raising Series C funding to support the company’s expedited growth, especially considering it typically takes at least five years to gain profit in markets like Indonesia. Roojai’s strategy includes acquiring existing insurance firms to make swift inroads into other markets.
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