Roojai revs up for success: Thai online insurer aims to drive into top 10 with profitable year ahead

Online insurance firm Roojai is poised to post its first profit from Thai operations in the fiscal year ending March 2024, according to founder and CEO Nicolas Faquet. This is largely attributable to the company’s growth in motor insurance sales, as it sets its sights on becoming a top 10 player in this segment by next year.

Faquet revealed it has been a testing time for the company.

“There were some challenges over the past two years from Covid-19, but we are seeing a very good dynamic today in the car insurance market. To me, the immediate future looks bright and positive.”

Roojai reported the addition of 149,248 customers at the close of its fiscal year 2022 in March, marking a 15% increase from the previous year. While Faquet acknowledged this as a respectable rate, he noted it was slower than in earlier years.

Insurance premiums for the period amounted to 133 billion baht, a 20% rise, with motor insurance accounting for 95% of premiums and the balance coming from accident and health products.

In a strategic move this July, Roojai acquired FWD General Insurance (FWD GI) for an undisclosed sum. This transaction enhanced the company’s portfolio in Thailand, bringing its combined annual premiums to over US$50 million (1.8 billion baht).

Faquet explained that the acquisition has enabled Roojai to evolve into a full-stack insurtech, possessing a licence to underwrite its own general insurance products. It has also opened new distribution channels such as brokers and agents, reported Bangkok Post.

Distribution methods

By leveraging more traditional distribution methods, Roojai aims to win new customers from areas beyond Bangkok, Chiang Mai, Chon Buri, and Phuket, as these major markets currently contribute around 70% of total sales. Revenue from other provinces makes up 30% of sales.

Looking ahead, Roojai plans to introduce new offerings beyond motor insurance and personal accident coverage in the coming year, including telematics and home insurance. Personal medical insurance and coverage for small and medium-sized enterprises are slated for launch in 2025.

Faquet shared that Roojai projects a 40% growth to conclude fiscal 2024, having already posted a 35% increase in policies within the five months ahead of the FWD GI acquisition and the launch of a new distribution channel. However, Roojai anticipates discontinuing several FWD GI products that do not align with its business strategy, including phone device insurance and commercial risk insurance, covering areas such as marine or factory fires.

Roojai has set ambitious goals, aiming to rank among the top 10 Thai motor insurers by the next fiscal year and break into the top three within five years.

Faquet revealed that the company’s Series B fundraising of US$42 million (1.5 billion baht) in March was channelled towards the FWD GI acquisition and organic expansion for Roojai Indonesia, in addition to exploring new opportunities in four other Southeast Asian markets and Taiwan.

Faquet concluded that there may be scope for raising Series C funding in the future, especially as it typically takes at least five years to turn a profit in Indonesia. Roojai is planning to acquire insurance companies to rapidly penetrate other markets.

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