Syn Mun Kong Insurance's License Withdrawn, Liquidator Assigned

[webfact]

 

In a move reflecting deepening troubles in Thailand's insurance sector, the Finance Ministry announced on July 4 that Syn Mun Kong Insurance Public Company Limited, a major non-life insurance provider, has been stripped of its operating license.

 

Citing severe financial instability, Finance Minister Pichai Chunhavajira appointed the Non-Life Insurance Fund as the liquidator tasked with divesting the company's assets to reimburse policyholders.

 

This drastic step comes as Syn Mun Kong grapples with the aftermath of aggressive COVID-19 policy payouts, which have tipped the firm into insolvency. It’s the fifth insurance firm to fold under similar pressures during the pandemic era, a worrying trend that begs questions about the sustainability of pandemic-related insurance products.

 

Compensation for policyholders won't be straightforward or swift, warns Chanaphont Mahawong, Manager of the Non-Life Insurance Fund.

 

As the new liquidator, the Fund has opened a 60-day window for claims registration through their website, but they've already amassed significant liabilities—over 50 billion baht owed to around 600,000 former policyholders from previously collapsed insurers.

 

With Syn Mun Kong added to the mix, these figures will soar, pushing potential debt to nearly 90 billion baht affecting close to a million people.

 

Chanaphont hinted at a bleak prognosis: with only one billion baht available annually for debt servicing, it could take up to 80 years to clear the pending claims.

 

This staggering timeline places a burden on affected policyholders, who now face a lengthy wait amidst financial uncertainty. As the saga unfolds, all eyes will be on how the sector adapts to ensure such financial implosions are avoided in the future, ensuring that policyholders can rely on their coverage without fear.

 

TOP: File photo

 

-- 2024-07-12

 

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[hotchilli]

3 hours ago, webfact said:

It’s the fifth insurance firm to fold under similar pressures during the pandemic era, a worrying trend that begs questions about the sustainability of pandemic-related insurance products.

They willingly offered the policies... and took the premiums.

[john donson]

imagine paying for years to keep premium low and now start at the bottom again, aka pay high premiums

[retarius]

An insurance robber going bankrupt? Never heard of such a thing.

[Snackbar]

Another troubling sign of impending doom