More insurance firms face bankruptcy if COVID-19 insurance claims are not scrapped

[webfact]

 

The Thai General Insurance Association has predicted that more insurance companies may collapse next year, due to the surging number of claims for compensation for COVID-19 infections, if the Omicron variant spreads across the country.

 

The association’s president, Anon Wangvasu, said yesterday (Wednesday) that insurance companies as a whole have sustained losses, amounting to 37 billion baht, from compensation claims by people infected with coronavirus, or an average of 3,000 claims a day up to November this year, and the losses are predicted to increase to 40 billion baht by the year end.

 

He said that compensation claims may surge to 180 billion baht next year, if the Omicron variant spreads quickly and infects several tens of thousands of people each day, in which case several more insurance companies will be unable to shoulder the burden of the claims and will, ultimately, be forced into bankruptcy.

 

Full story: https://www.thaipbsworld.com/more-insurance-firms-face-bankruptcy-if-covid-19-insurance-claims-are-not-scrapped/

 

-- © Copyright Thai PBS 2021-12-31

 

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[RandiRona]

Let them go bankrupt, otherwise thousands of people would, whose claims they are denying. But we all know how this story would end.

[scubascuba3]

Market forces let them go bankrupt, you can't offer it, take premiums then withdraw it when people claim. Another example of Amazing Thailand

[RichardColeman]

 

 

42 minutes ago, webfact said:

or an average of 3,000 claims a day up to November this year,

Thailand according to their published figures has had 2.22 million cases of covid (yeah I know). Knock off say 300,00 for the last two months (say 5k a day infections) and we have about 1.92 covid cases up to November.

 

3,000 claims a day this year = 912,000 

 

Are we truly led to believe that of the 1.92 people infected with covid, approximately half had covid insurance ? 

 

I simply do not believe that number. I think it is a prime example of the Thai government either lying about the number of infections or the insurance companies being well and truly conned by repetitive con artists 

 

 

 

 

 

 

[it is what it is]

 

oops sack the actuary...

[Soikhaonoiken]

Insurance Companies crying wolf,  there quite happy to take premiums.... Unbelievable... 

[ukrules]

C'est la vie, they should practice risk management with a dose of reality otherwise they deserve everything they get - all of it.

 

If the entire industry needs to declare bankruptcy then so be it, something better and more efficient will replace the current bunch of ineffective morons.

[aussiexpat]

Simple solution, stop the ridiculous hospital mandatory for covid positive and do like the rest of the World and only go to hospital if you are actually really sick

 

As for Insurance companies going bankrupt, Thailand thought they had the perfect scam by mandating covid insurance for every foreigner arriving...ain't karma a bitch lol

[bluebluewater]

Capitalism -  it's not for everyone!

[RandiRona]

1 hour ago, it is what it is said:

 

oops sack the actuary...

There is none, Monkey does all their calculations using Abacus.

[Nino3]

1 hour ago, aussiexpat said:

Simple solution, stop the ridiculous hospital mandatory for covid positive and do like the rest of the World and only go to hospital if you are actually really sick

 

As for Insurance companies going bankrupt, Thailand thought they had the perfect scam by mandating covid insurance for every foreigner arriving...ain't karma a bitch lol

Amen!

[spidermike007]

2 hours ago, scubascuba3 said:

Market forces let them go bankrupt, you can't offer it, take premiums then withdraw it when people claim. Another example of Amazing Thailand

Disagree. Many insurance companies worldwide behave like mafia organizations. Anything to deny a claim. Not anything unique to Thailand! 

[ukrules]

1 hour ago, RandiRona said:

There is none, Monkey does all their calculations using Abacus.

My thoughts exactly!

[ezzra]

If they will allow to scrape justified claims, i'll open an insurance company tomorrow collect premium and don't pay on claims, i'll be a billionaire in no time...

[mrfill]

It seems they haven't taken into account the greed of the hospitals who, quite happily, will inflate the price to absurd levels believing that the insurance companies will just cough up. They should have realised they aren't the only crooks in town.

[DefaultName]

Insurance is always a gamble, usually they win, that's why they sell it. Sometimes we win, that's why we buy it. 

 

Shut up and pay out like you promised. 

[Orinoco]

All scum bags, worldwide

Who cares, not me.

 

Ps, Cue the insurance salesman post.

 

 

 

 

[robblok]

Let them go bankrupt, they wanted the premiums and the other way around if someone does not claim they don't refund either.

 

However if they do go bankrupt then there will be people who won't be covered. Also car insurance and other insurances might be invalidated too. So having them go bankrupt might hit a lot of people too.

[robblok]

I think we are talking mostly about these insurances that give out 100k for people that were just tested positive even if they had no symptoms or costs. 

 

We are not talking about normal ones where they just reimburse hospital costs. That is what i think at least that was in the news before. 

[robblok]

10 minutes ago, mrfill said:

It seems they haven't taken into account the greed of the hospitals who, quite happily, will inflate the price to absurd levels believing that the insurance companies will just cough up. They should have realised they aren't the only crooks in town.

Sorry that is not the kind of policy that it is about so your comment is groundless.

 

The only way to save them is for the Insurance Commission to rescind the Registrar’s Order and allow insurance firms to scrap the “Find, Pay, End” policies, which enable the insured to claim compensation from the firms when it is proved that they were infected with COVID-19.

[hotchilli]

4 hours ago, webfact said:

The association’s president, Anon Wangvasu, said yesterday (Wednesday) that insurance companies as a whole have sustained losses, amounting to 37 billion baht, from compensation claims by people infected with coronavirus, or an average of 3,000 claims a day up to November this year, and the losses are predicted to increase to 40 billion baht by the year end.

They were happy to take the premiums.....

Som nam na.

[ukrules]

8 minutes ago, robblok said:

However if they do go bankrupt then there will be people who won't be covered. Also car insurance and other insurances might be invalidated too. So having them go bankrupt might hit a lot of people too.

That would be the governments fault. Surely there's some kind of regulator / oversight in place ? ????

 

If the government are not doing their job properly then things fail...you seem like a reasonably smart guy so I know you already know this.

 

Great failure = great misery, that's always been the way and it always will be.

[robblok]

1 minute ago, ukrules said:

That would be the governments fault. Surely there's some kind of regulator / oversight in place ? ????

 

If the government are not doing their job properly then things fail...you seem like a reasonably smart guy so I know you already know this.

 

Great failure = great misery, that's always been the way and it always will be.

Yea .. i already know this that is I mention it. I doubt that these insurance companies only have covid policies. I wonder if the people cheering in this topic will be so happy if their car insurance is gone because of one of these companies going bankrupt. (just an example house insurance too). 

 

So be careful what you wish for, there are probably more insurances issued then just covid ones and they will all be gone.

[jaiyen]

So all tourists must take out insurance when in Thailand and if it is done with a Thai company then there will be no chance of getting your money back, which you will have to pay up front to a greedy hospital.

[ukrules]

7 minutes ago, robblok said:

Yea .. i already know this that is I mention it. I doubt that these insurance companies only have covid policies. I wonder if the people cheering in this topic will be so happy if their car insurance is gone because of one of these companies going bankrupt. (just an example house insurance too). 

 

So be careful what you wish for, there are probably more insurances issued then just covid ones and they will all be gone.

This kind of thing happens every now and again, in which case you take out a new policy with a solvent company.

 

[robblok]

1 minute ago, ukrules said:

This kind of thing happens every now and again, in which case you take out a new policy with a solvent company.

 

Of course, however the people in this topic are cheering, i wonder how much they cheer if it hits them personally too. Its great to wish misfortune on an insurance company. However if that means they have to pay a couple of 1000bt again for insurance will they cheer then too or moan ?

[Caldera]

Let them go bankrupt and imprison the executives who issued unsustainable if not outright fraudulent policies. Others might learn a lesson from that.

[Jotho]

Serves them well...  They came up with this completely bullocks covid insurance demand to enter Thailand and now they can roast in their own lard which they had hoped to profit so much on with demanding that pointless covid insurance... If they just had let people have their normal insurance from back home then there would not be any issues

[robblok]

Just now, Jotho said:

Serves them well...  They came up with this completely bullocks covid insurance demand to enter Thailand and now they can roast in their own lard which they had hoped to profit so much on with demanding that pointless covid insurance... If they just had let people have their normal insurance from back home then there would not be any issues

Only, they are not talking about these kinds of insurances. 

 

Too bad that so many are commenting on something they have no clue about and use it to justify their preconceptions.

 

They are talking about policies that pay out a lump sum i believe 100.000 for a positive test for covid even if no symptoms or cost are incurred. This was mentioned in the news before and is talked about in the article if you read it. (if you have read previous articles too).

 

So this has nothing to do with the covid insurances that are needed to enter Thailand or with covid insurances that cover costs that are incurred. 

 

From the article see below:

 

The only way to save them is for the Insurance Commission to rescind the Registrar’s Order and allow insurance firms to scrap the “Find, Pay, End” policies, which enable the insured to claim compensation from the firms when it is proved that they were infected with COVID-19.

 

 

 

[doctormann]

Reminds me of an old adage concerning banks - very happy to lend you an umbrella when the sun is shining but as soon as it rains they want it back - NOW!!