Finance Ministry Says Insurance Industry Remains Robust

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BANGKOK (NNT) - The Ministry of Finance has affirmed that insurance companies in Thailand are still capable of handling the current crisis, following the recent revocation of licenses for some firms.

 

Finance Minister Arkhom Termpittayapaisith said the Thai insurance industry has sufficient financial reserves to manage the situation, while urging companies to better meet the changing lifestyles of customers.

 

In a speech delivered at the opening ceremony of the Thailand Insurance Super Leadership Program’s course, the minister said Thai insurance companies have passed stress tests carried out by the Office of Insurance Commission. He indicated that this demonstrated their ability to cope with financial challenges.

 

Arkhom also urged insurance companies to integrate modern technologies as part of their services, and to provide a wider variety of insurance packages that meet people’s needs.

 

Concerns over the stability of insurance companies have intensified following the closure of Southeast Insurance. The company is now in the process of issuing refunds to its clients and transferring its insurance policies to partner companies.

 

-- © Copyright NNT 2022-02-14

 

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[klauskunkel]

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Finance Ministry Says Insurance Industry Remains Robust

OK. Insurance industry is in trouble.

[Gottfrid]

Of course it remains robust. Can´t be better as there is enough people that are refused compensation according to their claims.

[Raphael54]

The insurance companies got into trouble because they ventured outside their field of competence.  They ventured into the gambling business.  Selling lottery tickets with a 100,000 THB (or 50,000) price.  You win the price, regardless of your expenses.  Get a positive test and collect your 100,000 THB. 
Insurance is supposed to be a data-driven business.  The company offering a policy is supposed to have a large pool of statistics so that they can accurately compute their risks, admin costs etc. and expected profit before computing the premium and offering a policy. 
Not so the Thai insurance industry.  There were zero data, no statistics, no experience, nothing to compute risks, costs, and premiums for the Covid insurance policies.  It was pure gambling. 
And the supervisor, the OIC and the Ministry of Finance, failed miserably in their responsibility and should be ashamed of themselves.  Which they are not of course.