COVID-19 causes closure of loss-ridden major insurance company

[snoop1130]

 

The Stock Exchange of Thailand (SET) was officially notified today (Wednesday) by Thai Group Holdings (TGH) of the decision of the board to close down one of its subsidiaries, Southeast Life Insurance, after it suffered a hefty loss caused by compensation payments made to customers who took out insurance coverage for COVID-19 infections under the “Found, Paid, Done” insurance plan.

 

In the letter, addressed to the SET, Thai Groups Holdings (TGH) chief executive officer, Chotipat Pichanon, said the company’s board decided to put an end to the insurance business of Southeast Life Insurance and to return its operating license to the registrar.

 

He explained that there was no other option, after the company had injected fund to increase capital to shore up the financial standing of the ailing insurance company, especially the 9.9 billion baht fund from the Thai Capital Corp (TCC) Group, its major shareholder.

 

Full Story: https://www.thaipbsworld.com/covid-19-causes-closure-of-loss-ridden-insurance-company/

 

-- © Copyright Thai PBS 2022-01-26

 

- Aetna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

[SCOTT FITZGERSLD]

interesting to know how many were tested positive and what was the ratio between paid customers and positive found customers.

if , say, only 3% were found positive, as the official statistics are, than the company can still make money.

[RandiRona]

Good riddance.

[Misterwhisper]

14 hours ago, snoop1130 said:

the “Found, Paid, Done” insurance plan.

Maybe that should be "Baited, Paid Up, Done In".

 

I mean, what happens to those people who have taken out life insurance with that company, many of them having paid premiums for decades?

 

Why did the company start offering a Covid insurance scheme in the first place when it apparently stood on such weak feet financially? Was there no risk assessment done before offering a Covid plan that could potentially - and as infections rose exponentially - result in a surge of claims?

[realfunster]

20 minutes ago, Misterwhisper said:

Maybe that should be "Baited, Paid Up, Done In".

 

I mean, what happens to those people who have taken out life insurance with that company, many of them having paid premiums for decades?

 

Why did the company start offering a Covid insurance scheme in the first place when it apparently stood on such weak feet financially? Was there no risk assessment done before offering a Covid plan that could potentially - and as infections rose exponentially - result in a surge of claims?

 

Well, COVID insurance (the 'Thai' version of THB 100,000+ for just testing positive) was a monumental brain fade by several companies in the industry.

AFAIK 2 companies have now folded, I suspect others will follow.

 

I am truly staggered at the stupidity, recklessness and greed of these companies.

 

The OIC doesn't come out of this well either having at least provided some sort of review/approval of these policies. Not sure if their mandate includes asking insurance companies 'are you bat <deleted> crazy?' but they must have some responsibility for regulating the insurance industry and protecting consumers. 

 

[internationalism]

I have insurance with them valid til May. My premium was over 1k and they suppose to pay 200k on just testing positive. 
i have also cheaper one from dhippaya, up to 100k for hospital. 

are there still any other insurers doing only covid policies?

my regular health insurance has very high deductible, so i need something basic to tight me up

[Caldera]

Now charge the executives.