Thailand’s Finance Minister Arkhom Termpittayapaisith has revoked the business licenses of two financially-troubled Thai insurance companies, Southeast Insurance and Thai Insurance, effective today (Friday), following a massive amount of COVID-19 claims.

 

Secretary-General of the Office of the Insurance Commission (OIC) Suttipol Taweechaikarn said that the finance minister had no choice but to close the businesses, because their shareholders have refused to increase the capital.

 

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He said that the two insurance companies now have more liabilities than assets, due to claims for compensation from many customers who took out the two firms’ “Found, Paid, Done” COVID-19 insurance policies.

 

Full story: https://www.thaipbsworld.com/loss-ridden-insurance-providers-get-licenses-revoked-after-massive-covid-claims/

 

-- © Copyright Thai PBS 2022-04-02

 

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Couldn't happen to nicer people.

Why isn't it manditory for insurance companies in Thailand to reinsure?. Good business practice and manditory in many countries. This way the risk is spread and less chance of this happening.

2 minutes ago, Paul Henry said:

Why isn't it manditory for insurance companies in Thailand to reinsure?. Good business practice and manditory in many countries. This way the risk is spread and less chance of this happening.

You've answered your own question...

Southeast Insurance owes Thb 13 billion? 

The CEO should be dragged off to the courts!

Staggering that these companies will just walk away....not a care for what the OIC says...and there will very likely be next to nothing done.

Southeast Insurance will disappear...however...the business managers will soon have another company open.

This says oodles about the quality of Thai management. This was a very idea opportunity to make profit, but they couldn't organise a p-up in a brewery. Fire them and the BOD.

Next step should be the criminal prosecution of the scammers in charge of designing and selling those insurance policies. Not holding my breath though!

One of them is called "Acne Insurance" in Thai. Not a name to cuddle up to.

 

oops, looks like their reinsurance department messed up...

 

or maybe they didn't understand how the insurance industry works

On 4/2/2022 at 1:28 AM, Paul Henry said:

Why isn't it manditory for insurance companies in Thailand to reinsure?. Good business practice and manditory in many countries. This way the risk is spread and less chance of this happening.

I don't think there would be a reinsurance company prepared to take on the risk!

So the insurance commission decided they were "Found" to be unable to be "Paid" and therefore they were "Done", kind of matches with the insurance scheme they believe they would make money on.  One has to wonder if the insurers believed the Governments claim that they had Covid under control and this was a no brainer.....however, the ones who found it was a no brainer were those that bought the policies and were lucky to cash out....

An off topic post about car insurers and a reply has been removed.  This topic is about the closure of some insurance companies due to a massive amount of COVID-19 claims.

32 minutes ago, madmitch said:

I don't think there would be a reinsurance company prepared to take on the risk!

Exactly.

Directors and officers of a Thai company can be held personally liable for their errors and omissions that end up causing financial harm to others.

 

It would be fitting if the outside shareholders of Southeast and Thai Insurance filed suit against the members of the board of directors of these firms for their roles in allowing the Covid product to be developed and sold.

 

Same for the OIC who may wish to sue those same directors on behalf of the policyholders who are getting stiffed.

 

Should be some deep pockets among the BoD members.

These  “Found, Paid, Done” COVID-19 insurance policies were just about the most ridiculous policies anyone could have conceived.

 

All one had to do was to catch Covid, get a doctor's certificate and they could claim 100,000 THB. And given that, for Thais treatment was free it was money in their back pocket. Folks were buying a policy, waiting the mandatory 14 days and then going out and deliberately catching Covid.

 

It was 'money for old rope' as the saying goes. No wonder the insurance companies took a massive hit. They dangled a 'scammers carrot' under the noses of a nation of scammers!

 

I bought a Dhipaya Covid policy for wife & myself. Will expire in May. Wonder if they're still in business, wonder if they really payout, wonder if they'll renew. Any ideas?

34 minutes ago, unblocktheplanet said:

I bought a Dhipaya Covid policy for wife & myself. Will expire in May. Wonder if they're still in business, wonder if they really payout, wonder if they'll renew. Any ideas?

They're definitely are still in business but they stopped selling this product a long time ago, not long after you purchased in fact. Their Covid policy is quite different now.

 

I looked at Roojai's website a while back and they won't accept anyone over 60 now. It was all comers this time last year.

2 hours ago, unblocktheplanet said:

I bought a Dhipaya Covid policy for wife & myself. Will expire in May. Wonder if they're still in business, wonder if they really payout, wonder if they'll renew. Any ideas?

I insured with them and was able to download the app called Tip Insure from there you can check your current policy. I found that they are only offering covid insurance for Thais. now.