Regulator says insurer suffering massive loss over COVID claims cannot close down yet

[webfact]

 

Thailand’s Office of Insurance Commission (OIC) said that the financially-troubled Southeast Life Insurance Company cannot just shut down, as it has to receive a permission from the OIC first, amid concern among millions of the company’s clients.

 

On Wednesday, Thai Group Holdings, the parent company of Southeast Life Insurance, notified the Stock Exchange of Thailand of the board’s decision to close the insurance company and to return its operating license to the insurance registrar, after it sustained heavy losses from claims by customers who have taken out insurance coverage for COVID-19 infections.

 

Citing Section 57 of the Non-Life Insurance Act B.E, 2535 (1992), the OIC said in a letter of clarification yesterday that that an insurance company which wants to cease operations must seek permission from the Insurance Commission, in order to protect the interests of the insured, the beneficiaries of the insurance policies and other stakeholders.

 

Full story: https://www.thaipbsworld.com/regulator-says-insurer-suffering-massive-loss-over-covid-claims-cannot-close-down-yet/

 

-- © Copyright Thai PBS 2022-01-27

 

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[itsari]

Not yet ?? How about not possible

[rbkk]

Let's hope the total liabilities are covered. If not, can the parent company be held liable and made to pay up fully?

[internationalism]

With the raging omicron I stillhope for my 200k cash on testing positive

[Liverpool Lou]

1 hour ago, itsari said:

Not yet ?? How about not possible

That's exactly what it said...

"...Office of Insurance Commission (OIC) said that the financially-troubled Southeast Life Insurance Company cannot just shut down..."

[Liverpool Lou]

1 hour ago, rbkk said:

Let's hope the total liabilities are covered. If not, can the parent company be held liable and made to pay up fully?

Read the link,  provision for liabilities has to be made before it can be wound up.

[rbkk]

Thanks for that but I was asking about the parent companies liabilities under Thailand insolvency law. Is the Parent company responsible for the subsiduaries debts and liabilities? In many countries they are not. Is it only the limited companies' shareholders who are responsible or can the parent company be held liable?

[rbkk]

52 minutes ago, Liverpool Lou said:

Read the link,  provision for liabilities has to be made before it can be wound up.

Thanks for that but I was asking about the parent companies liabilities under Thailand insolvency law. Is the Parent company responsible for the subsiduaries debts and liabilities? In many countries they are not. Is it only the limited companies' shareholders who are responsible or can the parent company be held liable?

[hotchilli]

3 hours ago, webfact said:

Citing Section 57 of the Non-Life Insurance Act B.E, 2535 (1992), the OIC said in a letter of clarification yesterday that that an insurance company which wants to cease operations must seek permission from the Insurance Commission, in order to protect the interests of the insured, the beneficiaries of the insurance policies and other stakeholders.

Surely an insurance company is underwritten?

[madmitch]

16 minutes ago, hotchilli said:

Surely an insurance company is underwritten?

An insurance company must retain reasonable amounts in reserve in order to pay outstanding liabilities.

 

Sensible insurance companies purchase reinsurance to cater for large unexpected claims.

 

It looks as though the reserves are being depleted by the covid claims and no reinsurance was purchased for this class of business, hence they are running financial difficulties that may well end up with insolvency.

 

I hope this answers your question

[John Drake]

This is one time when I wish Thailand would act more like China.  

Quote

The downfall of Xiang was part of Beijing’s purge of the insurance sector, with several other insurance executives being investigated and arrested for graft.     https://www.insurancebusinessmag.com/asia/news/breaking-news/chinas-former-top-insurance-regulator-sentenced-to-11-years-in-prison-225396.aspx

 

[Pedrogaz]

Sometimes poor business people lose money even in rigged markets. In this case there was no appreciation for risk and they thought they could make an easy buck.....they were wrong.

I thought insurance companies had to re-insure with the 

[ThailandRyan]

2 hours ago, madmitch said:

An insurance company must retain reasonable amounts in reserve in order to pay outstanding liabilities.

 

Sensible insurance companies purchase reinsurance to cater for large unexpected claims.

 

It looks as though the reserves are being depleted by the covid claims and no reinsurance was purchased for this class of business, hence they are running financial difficulties that may well end up with insolvency.

 

I hope this answers your question

Apparently the 300+ employees have not been paid for 2 months already. Another fiasco....

 

 

Edited January 27, 2022 by ThailandRyan

[robblok]

3 hours ago, John Drake said:

This is one time when I wish Thailand would act more like China.  

 

Ok, i get that. But where is the graft in this case ?

 

Apples and oranges your favorite.

[robblok]

25 minutes ago, ThailandRyan said:

Apparently the 300+ employees have not been paid for 2 months already. Another fiasco....

 

 

But these are not the same insurance companies correct ? Not that it matters, as its a total breach of trust. They should investigate where the reserves went and if any money has been taken out of the company that should not have been taken out.

 

They should check if they upheld all rules and if that is not the case then check the OIC did its job properly

 

 

[connda]

Well, if they go under the Thai government should be responsible for covering the claims as they allowed an company with solvency problems to operate.  How many more companies get to make bets and then renige on the coverage because they loss their bet.  What's insurance anyway but a casino game rigged in favor of the house.

[internationalism]

My hospital informed me, that they are bankrupt and claims against covid are not valid. 
any fresh news? Their website is still running, no any mention of bankruptcy. They even sell many different policies

[Mac Mickmanus]

7 minutes ago, internationalism said:

My hospital informed me, that they are bankrupt and claims against covid are not valid. 
any fresh news? Their website is still running, no any mention of bankruptcy. They even sell many different policies

I don't think that it would be a good idea to purchase any of their policies now 

[internationalism]

I have yet outstanding yet, valid till 05.2022 and trying to claim now covid one

Edited February 1, 2022 by internationalism

[andreww]

Anyone had luck getting any money from them? At least the premium refund... This is mindblowing, a company can just say "sorry no money" and walk away from their liabilities, I wish an average consumer could do the same to the banks or hospitals. <deleted>.