Hello, everyone. Thank you for sparing time from your busy schedules to be here with us. This is Ishiguro, Global Communications Department, Tokio Marine Holdings. We regularly hold Tokio Marine Insights, in which our frontline members provide explanations on topics of interest to analysts and institutional investors. Previously, we have covered entities in North America with Delphi in June last year, and HCC before that. This time, we would like to focus on Tokio Marine Safety Insurance (Thailand), a company that has been growing in prominence in emerging markets in recent years. We will provide an overview of its business, its business model, and its profit growth leveraged on its strengths. The presenter is Suteechai Santivarakum, CEO of the Thailand entity, and he will share with you the real voices of the people on the ground.
We're also joined by Mr. Hirai, CEO of TM Asia, the head of region for Asia. To start off, this is how we will proceed today. Mr. Suteechai, CEO of Thailand, will give his presentation using the materials posted on our website. Later we will take questions from the audience. Regarding your questions, please type it into the chat box that you see at the bottom of your page. It can be both in English or Japanese. Today, we would like to finish at around 5:00 P.M. JST. Depending on the number of questions, we'd like to continue until 5:30. Let's have Mr. Suteechai come up.
Thank you very much. From Bangkok, Thailand. Hello, everyone. Good afternoon. My name is Suteechai, CEO of Tokio Marine Safety Thailand. Please let me introduce my background a little bit. My education is a bachelor in engineering and MBA. I got my executive training program in Harvard Business School Advanced Management Program back in 2003. I have been working for the last 14 years or more. 14 years, first, I work in Siam Cement Group, the biggest Thai conglomerate. I spent two years after that in investment banking, and 27 years with Safety Insurance in Thai P&C market for the last 27 years. I used to spend around 15 years in the past, to work as a part-time lecturer in Mahidol University, in finance and investment for MBA students.
Today, I'm delighted to share some insights about Tokio Marine Safety Thailand, and what we have positioned ourselves in the Thai market. I will touch on a little bit on our integration, which is going very well as well. Before I jump on Tokio Marine Safety Insurance, I would like to provide us a macro regional view. This is the major Southeast Asian country, the major six countries. You can see the P&C insurance market. Thailand rank number one with $8.1 billion. The second is Indonesia, Malaysia, Singapore, Vietnam, and Philippines. This number, for comparison purpose, it was based on 2022. The next slide will present the Thai P&C market based on 2023 last year, which is the role of market size was at THB 285 billion local currency.
In terms of U.S. dollar is $8.3 billion. The majority of the business in Thai P&C, about 60% is motor business, motor insurance, and 16% property and PA 10%, and all the rest. The market growth for the next 10 years, that's projected by Allianz Global was around 5.5% or 5.5% for the next 10 years. This is a compound annual growth for the next 10 years. The next slide, please. You can see the Thai P&C market. It's very high competitive market, because it was fragmented as a result of too many player in the market in this industry. Total around 50 company competing in this market With top 10 company holding about 96%, and the rest was 31% holding by a small 40 more companies. In fact, the industry is gradually consolidated, but it still take a long time to consolidate.
As a result of a fragmented market, there's always a very high risk of price war and competing on price rather than on the quality of service, which will result in hurting the underwriting profit and underwriting discipline as well. In terms of distribution channel in Thailand, broker and agent constitute 77%, and 9% was bancassurance, and 14% is direct business and other channel as well. Next slide, please. In terms of Thai P&C market, we can see that motor, which is constitute somewhere around 60% of the market. In order to achieve economy of scale and critical mass, insurance company have no choice but have to pursue and go with this market.
The nature of this market is, starting from when the Thai consumer come to buy a new car, it's always come with insurance policy with the new cars as well, which is provided by OEM or by dealers. In the first year, to facilitate the new car sales. From the second year onward, the customer will arrange insurance by themselves. The key success factor is, we need to have a diversified distribution channel. Is to capture the new car sales, and new car insurance, which is provided by OEM and dealer channel. The second year is mainly for broker and agent, we also need to have strong channel in agent and broker as well. Diversified distribution channels enable us to capture the whole spectrum of the motor insurance. In Thailand, the motor claim service is very critical for motor insurer.
I think in other country, it might not same as Thailand's. For example, in Japan, the claim frequency is around 10%. In some country like Australia, maybe 20%. In Thailand, the claim frequency and motor claim frequency is around 70%-80%. It's around 7x or 8x more than Japan market. That's why having strong on-site survey claims is very critical for the success of the business. In Thailand, when the car have accidents, the default was decided by police and at the site, and also insurer and the surveyor will go to the site to support the customer describing the situation to police and support the claim procedure. On-site survey is one of the core claim service for the insurer in Thailand particular. The key success factor is the nationwide network is very critical to deliver timeliness.
On-site arrival is a key factor for the market reputation. Not only getting customer satisfaction, but also to prevent any moral hazard and fraud at the scene as well. Processing nationwide network and large number of in-house surveyor enable us to arrive the scene quickly and flexible our service to our customer. Next slide, please. Tokio Marine Safety, I will use our 2023 projection number. The top line, gross written premium projected in 2023 was THB 21 billion local currency or $600 million. We are projecting to have JPY 2 billion underwriting profit or $56 million. We aiming to achieve market ranking at the number four and also market ranking for motor at number two.
Currently we have more than 2,000 employees, and we have more than 6,000 producers with nationwide network that cover more than 90 location branches across the country. In terms of financial strength, we were rated A by S&P. The next slide, please. Further to deep dive into Tokio Marine Safety Insurance. In terms of channels, we currently have 20% is Japanese business, and broker and agents contribute 36%, dealer finance 42%. In terms of motor, is our main business. You can see the chart, line of business. Motor voluntary consists of 63%, which is slightly higher than industry. From the previous slides, you can see the industry motor voluntary is around below 60, slightly below 60. For Tokio Marine Safety, we achieve 63% of the total portfolio, slightly higher than the industry.
Fire and property is around 14%, PA and health are 8%, marine is around 6%. Tokio Marine Safety is ranked number one in terms of marine business in Thailand as well. In motor, we ranking number two, which is quite well-balanced in our portfolio. Next slide, please. It just provides us how we organize and we run our business. Start with sharing with us about Tokio Marine Safety vision and its values. Our vision is to foster sustainable future and our value to support the vision is, we look beyond profit and deliver results through cooperation and build trust and empowerment to our stakeholders. This is quite pretty much in line with Tokio Marine Group as well, which is we are quite similar in terms of culture and vision as well. Next slide, please.
I just touch a little bit on the integration, which as I mentioned just now, it was running quite smooth and well. The integration was held between Safety Insurance Thailand and Tokio Marine Thailand. I will go with the Safety Insurance first. Safety Insurance was established in 1941, it's around 83 years ago, with 1,300 employees before integration. The overall market ranking number eight and motor market ranking number four in Thailand before integration. Actually, Safety pose a strong presence in motor insurance business, supported by extensive nationwide network, as you can see from the graphic below, and very cost efficient and lean operation. As you can see from the graph below, Safety has been consistent profit in the past 10 or even 20 years, if we look back. Next slide, please. Next slide is Tokio Marine Thailand. Tokio Marine Thailand started in 1961.
We had 800 employees before integration. Market ranking before integration is number 10 and motor ranking number nine before integration. As things are, Thailand was one of the biggest investment destination for Japanese companies for decades. It also posed the advantage of Japanese business, especially strong relationship with Japanese OEM industry, which is very critical for the core motor business. In 2023, more than 6,000 Japanese companies operate in Thailand. From 2023 new car sales, among the top five, four is Japanese OEM, with Toyota ranked number one, Isuzu number two, number three is Honda, number four Ford Motor Company (Thailand), and number five is Mitsubishi Motors (Thailand). Please, next slide, please. About the integration, we started to run operational integration in 2020.
The main principle of the integration was to integrate the two companies to maximize each company competitive advantage, and to protect business as usual, and to prevent the risk, any disruption from our integration to ensure smooth operation and the transition to the new company for our client and for our new business partner as well. Synergy was achieved across the value chain of the business. We achieved synergy, starting from revenue synergy, which is we can synchronize between dealer market and also broker and agent market, and also geographical diversification across the country. We also achieved cost synergy that we can eliminate quite a lot of duplicate functions, and also we can share a lot of resources that bring down our operating costs. We also achieved capital synergy.
After the operational integration, we realized we had surplus capital, quite a lot, so we decided to release it back to Holdings. That is one of the examples. As a result of the integration, Tokio Marine Safety Thailand rose to number four in the Thai market. We enjoyed quite a lot of synergy, and we had more diversified portfolio and more well-balanced portfolio and more sustainable portfolio in the long run. Next slide, please. The company performance from Tokio Marine Safety, in the past five years. We started to run legal integration back in 2019, but operational integration we ran in 2020. You can see the V shape of the graph of the top lines, which is in 2020, we faced COVID lockdown, not only in Thailand, but that happened across the globe.
The GDP in Thailand in that year was in negative of more than 6% in that year, and it caused our contraction in our top line. However, after operational integration started and we gradually came back, if you are judging from the point that we started operational integration, the compound average growth was 5.7%. If we are starting from 2019, it is around 2.6%. However, if you look at underwriting profit, the five-year compound average growth was 24.4%, which is quite impressive achievement. The good thing is, Tokio Marine Safety did not have any exposure in the COVID policy at all. That is why we had quite good results, excellent results as a result of the COVID. Next slide please. The company performance relative to the market.
You can see the combined ratio of Tokio Marine Safety Thailand was as high as 94 before operational integration, and as low as 82 after operational integration in 2021. Now we are coming back to more reasonable level, judging from pre-COVID level. The combined ratio is always better than the market performance. If we look at the underwriting profit, Tokio Marine Safety has been very consistent in keeping underwriting profit compared to the market, which experience huge loss in the COVID exposure, which we didn't have. Next slide, please. The key success factor for integration. We lay out some guidance for our integration work. First is vision and principle, planning execution, people management, leadership and communication, corporate culture. I go in detail one by one. The first is vision and principle.
We set out very clear vision and principle to guide employee from different background in both company to the same direction, clarify the goal to build a company's leveraging strength of the both company. Planning and execution, we separate the integration into two phases. The first phase is legal integration, which has happened in 2019. This one is critical in terms of contacting authority and regulator in order to get all the legal procedure approved. This is a first step. The second step was, merging the operational system and also the organization structure as well. We also try to limit the risk disruption for this transition to our business performance. In terms of people management, we try to build a harmonized organization, because the people come from different backgrounds, so it's very critical to have a harmonized environment, a working environment for all the staff.
We try to optimize, and place our personnel from both company to maximize the performance of the integrated company. The fourth is leadership and communication. The management team from both company also work very closely with Tokio Marine Asia, TMA, to lead the integration process. The fifth is corporate culture. Both company have quite cultural fit, but still have to went through a critical integration process. We spend a long time, to an effort to build corporate culture for the new integrated company. I think this process will go on ongoing basis. It's not static. It will be quite dynamic in the future as well. The next slide, please. Just give us a few example. What is the strength of Tokio Marine Safety Thailand. First is already mentioned, the diversification of the distribution channel and the network.
Considering the nature of the Thai motor insurance market, having diversified distribution channel is an advantage that you can capture both the new car sales premium and also the used car market, which is dominated by broker and agent. As shown in the graph, Tokio Marine Safety have well diversified channel portfolio, which enable us to capture motor business from various spectrum of the market segment. We also have very strong relationship with our producer and the business partner. This also leading us to have a quite high quality, service quality to our customer. The extensive number of service network, which is more than 90 branches and profit center, and with more than 6,000 business partner.
Recently, we conduct a survey among our producer, we can achieve very high NPS score from our broker and agent, we were rated at 59 point, which is quite high. I think anything more than 40 or 45 is very excellent already. We're glad to see such a high NPS score. Next slide please. The next slide is motor claim service. As I mentioned, it is important for us to have extensive nationwide network to service our motor customer. Certainly this will have provided by our in-house adjuster, we have more than 300 in-house surveyor. The reason we don't outsource is because we don't want to compromise our strength. In-house surveyor is one of our proprietary in competitive strategy as well.
Also, we can prevent a lot of moral hazard and also the leakage and the fraud from timely service and timely arrival to the scene. We also have the garage that in our panels, more than 2,000 panel garage that work with us very closely. You can see the market ranking and number of service location and network is very critical for the market ranking as well. Our PA, having more than 145 branches. For us, number two, we have 91 locations. For us, I think we also conducted customer survey, particularly our motor claim department survey as well. We were rated at 61, also very, very impressive score.
All of that satisfaction also one of the critical issues also, we must arrive the scene of the accident before 30 minutes, we can achieve more than 90% of the case that we can achieve arrive the scene more than 30 minutes, not only increase our customer satisfaction, also can prevent moral hazard and the fraud and the leakage, and some or any manipulation in the accident scene as well. Next slide, please. The next strength of Tokio Marine Safety is underwriting disciplines. You can see compared with our peer, Tokio Marine Safety have very consistent underwriting profit and quite predictable. The reason is, we utilize quick and flexible marketing strategy decision by adjusting to market trend and change in profitability. It is important to balance growth and profitability.
The good example is, the discipline not go into COVID insurance, for example. Because the market is such a fragmented and competitive, there's a very high chance and high risk that it will have a price war any time. In order to prevent ourself from the price war, we try to neutralize with our service quality, to product more sustainable growth and profit in the future. Next slide, please. In terms of cost efficiency, you can see, compared with our peer competitor, Tokio Marine Safety was ranked second-best. We are not the best. We are second-best. Just for our information, the best is the captive insurer of the bank, they don't need much operating people because most of the premium was solicited from the system of the bank straight to the system of the insurance company.
That's why they can save quite a lot of cost than us. Among the peer, I think we are running quite well. Certainly, we still have quite a big room to improve, which is recently, we try to work a lot of project to keep our costs down. We invested quite a lot in automation and digital, even utilize some AI to help our operation. The example is, with the rising in premiums from 2020- 2023, our headcount remained stable, slightly below 2020. This is one of our achievement as well. Certainly, the achievement will go on and it is a continuous process for us. Next slide, please. What next? The next is, what is our initiative? Our initiative is, first is profitable growth, excellent operation, governance enhancement, and people culture. I will go in detail one by one.
The profitable growth, certainly, motor is one of our core business. You cannot achieve economy of scale without involved with the motor business. Economy of scale is very critical for us in order to bring our fee cost down and being able to compete in all of the product lines. We spend quite a lot of effort to keep good market position. Also now we are trying to capture the new EV market. The second initiative is to have excellent operation. Many initiative to improve operational efficiency. As I mentioned, we invested quite a lot in automation, AI, and also digital stuff. In later slide, we might have something to present to you, like on digital transformation in our claim department. The third is governance and enhancement. Certainly, risk management and compliance is key success in terms of sustainability for us.
Also, we also keep very focused on cybersecurity as well for our internal control. The last initiative is people and culture. Our business is people business. People is our business foundation, actually. That's why if our foundation is strong, we must have good people and strong culture. This is, some can interpret as a soft side of the culture, but it's still very critical for the company. As integrated company, we spend many times and effort to build a good company culture and also we try to promote mixed culture as well. Next slide, please. Next slide will be one of the example to show us how we do in our digital transformation. The first one is the car condition inspection by online app.
Maybe Thailand is quite unique in terms of precondition for motor insurance because, in Thailand, we still regulated under tariff and also the pricing was based on car, not based on people. That's why we must have to be sure that all of the property and car they insure with us will be in good condition before we underwrite or before we issue the policy. In Thailand, mostly, the claim department will handle the car inspection before underwriting or before we issuing the policy. By transforming from traditional way, which is we use surveyor, go out and check, that we now we try to utilize digital solution, which is the consumer can do it by themselves by connecting through the app and then contact our staff and then we can do inspection via the app.
This will also have quite good customer experience and improvement as well. As a result, we can achieve more than 27,000 man-hours, rather than we use our surveyor, went out and then check the car. We don't use the people. We use the app, we can save up to about 27,000 man-hours, which is cost somewhere around THB 8 million . The money itself is not explain much anything, but the efficiency and the customer satisfaction and the customer experience, and also cost saving in the long term is very important to us. Next slide, please. The claims. Next one also a claim digital transformation initiative. This one, we enhance our claim notification channel through LINE Official or LINE OA.
Just for our information, for the common communication app in Thailand, LINE is a market leader and also LINE occupy more than 90% of the market share in the communication app in Thailand. We try to utilize notification through LINE rather than traditional. Most of the customer will make a phone call, notify the company, but now they can through the channel of the LINE OA. We can utilize our resources much more efficient, rather than using all of the adjuster go out. We can get the notification from the LINE, and it will straight to the claim system. No double handling and no duplication. It will straight from the LINE application to our system. It will reduce a lot of human error and also reduce a lot of duplication work as well.
We can allocate resource to work in much more critical tasks. I think this is all I have presented. Thank you and welcome. I will entertain any question that you may have.
Thank you very much, Suteechai. Now we would like to take your questions. If you have questions, please go ahead and type them in the chat box in the bottom. It can be in Japanese or English. If you would like to cancel your question, please just say so in the chat box once again. Thank you very much for your cooperation in advance. Let's go ahead and take the questions. Here's one already. Suteechai-san, this is for you. This is from Mr. Watanabe, Daiwa Securities. He has two questions. First, regarding combined ratio. In your presentation slide, it was on slide 10, where it was Safety. The combined ratio was in the latter half of your 90s, but after the integration, on page 14, it said that it had declined to 80%. How did it improve so much?
What is the key factor, how much do you think this will be sustained? That is the first question. I would like to move on. Yes, go ahead and take it one by one.
Okay. That's good. We will do it one at a time. It will be easy for me. Thank you for your question. After the integrations, as I mentioned, we have restructuring our portfolio from both sides, both companies, we can eliminate some unnecessary risks out of our portfolio from both companies. That is one of the achievements. Also, as I mentioned, we can enjoy quite a lot of cost saving and synergy as well. That also constitutes 1% or 2% that we can save from the synergies as well. That's all I have. Yeah.
Thank you very much. Let's move on to the second question, again from Mr. Watanabe, this is regarding page five. Suteechai-san, you've mentioned that it's fragmented and there are many players. What is your forecast regarding the consolidation of the players here? Do you think there will be any additional M&A at TMSTH? Do you have room for inorganic growth?
I think, to be honest, no one know the future, I would like to answer the question honestly. I will not rule out any future acquisition or any M&A might happen in the future. I think, if you go back the last 10 years, the top 10 insurance company was holding 60%, after 10 years, it increased to 69%. The process is quite slow, the tendency is consolidation must happen. I think that when we reach a point, I think it might happen faster, because for those small players, they might not see the light end of the tunnel, it's better for them to cash out rather than stay and might get nothing after all. That's why I think the rational idea might happen someday in the future. It will accelerate the consolidation in the industry.
Thank you very much. Let us move on. This is from Mr. Sakamaki from Mizuho Securities. There's basically two points in his question. Number one is about the operation environment, short-term environment that surrounds your business. Because in Thailand, I understand that there's an increase in the debt in the households, and it seems like, is that impacting the sales of cars? Going forward, how would that impact the units in the auto insurance? What is your forecast regarding auto insurance against this backdrop of household debts?
Thank you very much for your question. Certainly, last year, I think our whole economy experienced shortage of liquidity in the system, and as a result, the bad debt or delinquency rates rising because of that. If you come to the new car sales issue, that is quite complicated. I think that I can give you at least two factors. The first is, as you mentioned, because of the delinquency on the rise, the bank and the finance tighten their lending, the consumer cannot access to the money to buy the new car. This is one of the reasons. In the past, if the case proposed to the bank, maybe 80% will be approved. Because of the delinquency rate rising, now maybe out of the 10, just only three or four cases approved.
This is one of the reasons why the credit provided by the finance institution has been much lower compared to the past four years ago. The other issue, which is not concerning economics, it's because of the disruption in the technology I can see it has quite a big impact on the auto industry. Particularly, people around me or my friends, they are quite uncertain to buy the new car, because a lot of them already reached the time to buy the new car, but try to delay the decision because they want to see the new development of the EV market. Maybe he told me that he would like to see one or two year from now what EV market will moving on which direction, will decide to buy a new car next year or next two years.
This also hurting the decision because people delay the purchasing decision, also one of the major factor as well. For your comfort, you will understand, in Thailand, we have 20 million car, but we have only less than 1 million new car, right? The majority of the motor business is the used car and other old cars, used car market, which is constitute around 20 million old car. Just only 1 million new cars, less than 1 million new cars. Last year, is the first time that they register less than 800,000 new car. I think, as I mentioned, come from two factor. The first factor is because of the economic factor and delinquency rate. The second is because of the people are reluctant to make decision during this transition and uncertain period of the EV as well.
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Thank you very much. It seems like there's much more leeway to grow in the EV market. The second question is related to this. When you look at the long-term perspective, what kind of insurance item will grow in the future? In your presentation, you said, on page four, you show the Thailand overall insurance share. The composition is here, and more than half is comprised by motor. I'm wondering how much is the auto penetration or fire and specialty also probably has growth leeway. How do you think this will change in the next 10 years, please?
I think, in Thailand, the risk perception between different culture perceive different risks. For example, the Japanese perception of risk and the Thai people perception of risk is quite different, because, in Thailand, we don't have any natural catastrophe. That's why people feel different when we talk about the risks. Certainly, I totally agree, in the long term, the casualty always will become more and more growing more rather than the property itself. This can be witnessed across the world. I think Thailand is not exception on that. I think for the motor and the property in Thailand, we can see for the next 10 year, it will not change much. It will gradually change. It will not drastic change.
Thank you very much. Next is from Mr. Sasaki from Nomura Securities. We have several questions, we will take this one by one. This is all regarding auto insurance. First of all, regarding the premium, each company has their own unique data, and they have their own proprietary calculation, correct? Or are they using some kind of index? In Japan, we have something like an advisory rate, but are you using something like that in Thailand? Also regarding the premium pricing, is there some kind of regulation?
Yes. As I mentioned, in Thailand, P&C market was regulated by regulator. The regulator provides a very wide range between maximum and minimum. You can price by varying from one to five or 1- 10. It is up to you. It really depends on as long as you can make it within the regulations tariff range, that's fine. Within that range, each company's cost structure is different. That's why, as I mentioned, if you look at one of the slide that we compare expense ratio of our peer competitor, right? One of our peer competitor, they have about 7% expense ratio higher than Tokio Marine Safety. It means that they cannot price same as us, or if they price 6% higher than us, they just break even.
This is also reflect in the long term that the price gap of each company will be narrow and narrow in the future.
Thank you very much. The expense ratio is extremely important. We understand that it's a key element in the competition. One more point from Mr. Sasaki. Now, this is about the actual guarantee of the auto insurance. Is there any difference between the companies? Do you have any underwriting for natural catastrophes included in the auto industry? Thank you.
I think the question has two parts, right? The second part is catastrophe. May you repeat the first part?
Is there a difference in what the auto insurance covers between the different peers and companies? Do they cover different items under the auto insurance?
They will provide minimum cover that being regulated by regulator. Most of the player will go with the guidance of the regulator for the minimum cover. Some competitor try to increase the cover. Sometimes if you increase the cover, you cannot increase the price, and then you will hurt yourself anyway. I don't see any successful case, in order to provide higher cover, but without any increase in premium. That's unsustainable. Unless you can provide higher cover with higher premium, that will be okay. In the market, they still have some customer that willing to pay more in order to get higher cover. That's quite usual. That's reasonable. What is the second question? Sorry.
It is about the natural catastrophe. Is it included in the auto insurance?
If you are the consumers, yes. Natural catastrophe is. The motor voluntary policy is comprehensive cover, just like all risks. It cover everything, including flood, including total loss or whatsoever, or even fire or whatsoever. Yeah.
Thank you very much. Let's take the next question. This is regarding slide 17 and 18. On page 17, you have information regarding the peer comparison in the auto insurance. There's Peer A, this is 22%, extremely high share. Us, we are 9%, rank two. On page 18, there's the underwriting profit. The volatility seems to be relatively high here. In that sense, in Thailand, us, what kind of differentiated strategy do you have against them? Or do you want to just maintain rank number two with stability? What is your strategy? What is our strategy against Peer A?
I think the question is about the motor insurance, which is understood, with the Peer As. As I mentioned, Peer As have around 6% expense ratio higher than Tokio Marine Safety in Thailand. In the past, the Peer A, as a market leader, they can command the risk premium around 10% higher than its competitor. Right now, that price gap of 10% keep narrow. I think even 3% or 5%, maybe, I'm not sure they can achieve because other company also can deliver same level of service now. The price gap that they used to command 10% higher than peer competitor, which is not sustainable. You can see if you track the market share of Peer A, it keep reducing. In the past three or five year, it keep reducing.
They're already contracting their market share, as I mentioned, because certainly you can see they are running at loss because of the price gap keep narrow from 10 to just three or even zero in some cases. It means that they cannot survive with the higher expense ratio. This is the very tough market in terms of Because the business itself is just like commodity, right? If you cannot keep your cost down, and then you are running very dangerous situation by yourself.
Yes. Thank you very much. It is now time, but I would like to add a frequently asked question from an investor from my side. One last question. Suteechai-san, you've talked about a very strong, powerful growth in your presentation, and what is often asked is: going forward, as you continue to grow your profit line in the Thai P&C market, what is the biggest risk? What could happen that you will not be able to achieve this growth curve? This is your final question.
I think we have to accept that insurance business is quite cyclical. If you protect your timeframe quite short, and then maybe you can't see the growth by itself. I think at this moment, we've just been through a strong market, and now we are entering the soft market from now on. We have to navigate and have to guide our underwriting and our service department to went through this soft cycle until we reach the strong cycle again, the hard cycle again. In the long run, I think we certainly, as you can see, the market leader is eroding their own market ranking, their market share. Eventually it might reach a point that there's a lot of change in the market by itself.
Thank you very much. With this, we would like to close Tokio Marine Insights. At the very end, we have just one request. If you have any comments or opinions about today's session or any topics you would like Tokio Marine Insights to cover in the future, please let us know in the chat box at the bottom of the screen. We would welcome anything. Thank you very much for taking time out of your busy schedule to join us today.