Finance Minister urges insurers to adjust policies to better reflect current situation

BANGKOK (NNT) - In a recent special lecture, Caretaker Finance Minister Arkhom Termpittayapaisith highlighted the crucial role of the insurance industry in fostering sustainable economic and social growth.

Speaking at an annual conference for high-level insurance industry representatives, he emphasized the necessity for the Office of Insurance Commission (OIC) to closely monitor and manage increasing risks brought about by natural disasters and contagious diseases.

Minister Arkhom praised the insurance industry for alleviating the impact of COVID-19 on the public, while suggesting that foreign insurance systems should be adapted to the Thai context. He proposed a three-point development plan for the insurance sector. The first point involved driving sustainable policies in line with the United Nations’ goals to combat the effects of global warming on economies worldwide.

For the second point, Arkhom argued that the insurance sector should incorporate technology to cut costs and improve efficiency, with a focus on secure data management. For the third point, he said that insurers should ensure trust in the insurance system by protecting consumers from various risks.

The Finance Minister acknowledged that while Thailand’s economy is steadily recovering, primarily due to the tourism industry, it still suffers from volatility over global economic factors and a limited recovery in the export sector. He stressed the importance of maintaining a stable and sustainable financial sector and enhancing confidence in Thailand.

Arkhom noted that Thailand’s successful bid to host the World Bank and International Monetary Fund meetings in 2026 resulted from greater confidence in the country.

As for the spending limit under Section 28 of the Fiscal Discipline Act, Arkhom acknowledged that only 18 billion baht remains available, which may constrain the new government’s semi-fiscal policies. Currently, the spending limit is set at 32%—a reduction from an expanded ratio of 35% during the COVID-19 crisis.

Arkhom noted that whether this ceiling needs to be expanded in the future will be determined by necessity and would require approval from the Fiscal Policy Committee. For the time being, he said he did not see the need for expansion, and it is recommended that the limit should return to the original 30%.

By: Namo Vananupong

Source: https://thainews.prd.go.th/en/news/detail/TCATG230721091741470