You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

January 11, 2024

Overview of Draft Amendments to Thailand’s Insurance Laws

Subscribe to Updates

In December 2023, Thailand’s Office of Insurance Commission (OIC) presented draft amendments to the country’s laws for life and non-life insurance, pointing to significant modifications ahead for the laws governing insurers. These amendments primarily aim to:

  • Elevate governance standards within the insurance industry.
  • Support compliance with the Financial Sector Assessment Program (FSAP) of the International Monetary Fund and the World Bank.
  • Address current regulatory enforcement issues.
  • Harmonize governance standards for insurance businesses with those for financial institutions.

The draft amendments involve changes to a wide range of regulatory areas; key changes include the following:

Corporate Governance

  • Expanding the definition of directors to include representatives of foreign insurers’ branches in Thailand.
  • Imposing the same standards of care and obligations on “persons having the authority to manage the company” as on directors.
  • Requiring OIC approval for appointment and reelection of directors.
  • Expanding the list of prohibited connected transactions to include lease of property.

Shareholding Requirements

  • Requiring mandatory reporting to the OIC for individuals holding 5% or more of shares in an insurance company.
  • Requiring regulatory approval for 10% shareholding and prohibiting exceeding the limit without OIC approval or compliance with subregulations.

Dividend Payments

  • Empowering the OIC to issue subregulations on dividend payments from both life and non-life insurance companies.

Products and Distribution

  • Permitting directors, staff, and employees to sell insurance products after obtaining relevant training from the OIC.
  • Granting insurers discretion to set group insurance premium rates following regulations, methods, and conditions set out by the OIC without having to obtain OIC approval.
  • Allowing insurers to underwrite foreign currency-based insurance.
  • Allowing insurers to offer additional benefits beyond policy stipulations in compliance with the relevant OIC subregulations.

Capital Fund and Finance

  • Establishing minimum capital fund requirements of approximately THB 1 billion for non-life and THB 5 billion for life insurers.
  • Imposing sanctions if the capital fund falls below the required amount.

Other Issues

  • Allowing outsourcing under future subregulations.
  • Requiring auditors approved by both the SEC and the OIC to report corruption and be liable for misconduct of insurers that they audit.
  • Extending actuarial license validity to five years (from two years) and requiring insurers to appoint at least one full-time actuary.

Business Transfers and Amalgamations

  • Simplifying the novation process for insurance policies during business transfers.
  • Stipulating that ongoing court cases are assigned to the transferee or the new company after completion of an amalgamation.
  • Introducing additional offenses and liability for directors and management officers found liable for asset mismanagement, conflicts of interest, or fraudulent acts.

The amendments are currently under review by the cabinet, and the process of finalizing and enacting them still requires a significant amount of time. We will continue to monitor and provide updates on the status of these drafts.

For more details on the draft amendments, or on any aspect of insurance laws and regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], or Thammapas Chanpanich at [email protected].

Related Professionals

Industries

Insurance

Location

RELATED INSIGHTS​ 

August 14, 2026
Thailand’s Office of the Insurance Commission (OIC) has issued guidelines clarifying the boundaries between permissible and prohibited activities for unlicensed individuals—including influencers, bloggers, and content creators—when communicating about insurance products on social media. The Good Practice Guidelines for Persons Not Licensed as Insurance Agents or Brokers Regarding the Dissemination of Insurance Content Through Digital Media B.E. 2569 (2026) took effect on July 24, 2026. Activities Requiring a License The guidelines reserve the following activities for licensed agents and brokers: Soliciting or facilitating insurance contracts. Providing personalized advice on product suitability. Recommending policy cancellation to purchase promoted products. Creating links that facilitate contract formation. Receiving performance-based compensation tied to policies or premiums generated. Importantly, boilerplate disclaimers such as “this is not a recommendation to buy insurance” will not shield individuals from liability if the OIC views the content as personalized advice or solicitation. Permitted Activities Unlicensed persons may present general educational content about insurance—such as explaining terminology, sharing industry statistics, reporting news, or sharing personal experiences—provided the content does not target specific individuals to purchase from specific companies. The guidelines also set out best practices for communication, including presenting information in a fair and balanced manner that covers both benefits and limitations, encouraging consumers to read policy terms and consult licensed professionals, verifying information from credible sources before dissemination, and exercising special care when the audience may include vulnerable groups such as persons aged 60 and older. Prohibited Practices Prohibited practices include fear-based marketing, creating artificial urgency, omitting material limitations, making exaggerated claims, falsely claiming professional credentials, using fake engagement mechanisms, and sharing false or misleading content. The guidelines also reinforce the prohibitions under section 83 of the Life Insurance Act B.E. 2535 and section 78 of the Non-Life Insurance Act B.E. 2535 against soliciting insurance contracts with foreign operators
Read More
June 30, 2026
Tilleke & Gibbins’ insurance specialists in Bangkok provided Thomson Reuters’ latest country update on Thailand’s regulatory framework for the insurance industry. The country update, which is part of Thomson Reuters’ extensive Regulatory Intelligence offerings, contains information and guidance for insurers active in the Thai market. The guide covers the following topics in detail: Permission to operate; Legal and regulatory considerations for domestic and international insurers; Capital reserve requirements; Investment management and markets; The Office of Insurance Commission’s arbitration system for handling complaints; Creditor hierarchy; Rehabilitation of non-life insurance companies; and Personal data protection requirements for insurers. Thomson Reuters Regulatory Intelligence is a service that provides with curated news, analysis, and data across jurisdictions to help legal, risk, and compliance professionals manage compliance and mitigate global risk. The full Thailand insurance country update is available by subscription to Regulatory Intelligence on the Thomson Reuters website.
Read More
June 30, 2026
Insurance specialists from Tilleke & Gibbins have provided an update to the Vietnam chapter of Thomson Reuters’ Practical Law guide to insurance and reinsurance. The guide is a Q&A-style overview of insurance and reinsurance law in jurisdictions worldwide. The Vietnam chapter provides a detailed overview of the legal framework for the insurance and reinsurance market in the country, covering the following issues: Regulatory framework for insurance and reinsurance Authorization for insurers, reinsurers, and insurance intermediaries Ownership restrictions Ongoing requirements Penalties for noncompliance Sales and marketing of insurance and reinsurance Transfer of risk Reinsurance contracts and risks Contracts and policies Claims Dispute resolution Insolvency Tax Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More
June 5, 2026
Thailand’s Office of Insurance Commission (OIC) has opened a public hearing on proposed amendments to the OIC Notification on Criteria for Information Technology Risk Governance and Management for Life Insurance and Non-Life Insurance Companies B.E. 2563 (2020) via the centralized Law platform. The public consultation period runs from May 8, 2026, to June 9, 2026. The proposed amendments aim to elevate the IT risk governance and cybersecurity risk management framework to be more modern and aligned with international standards, with a focus on strengthening cyber resilience, enhancing the role of IT audits, and establishing data governance and data quality controls. The parties affected by these amendments include life insurance companies, non-life insurance companies, and external IT auditors. Key Changes Elevated Role of Board of Directors The proposed notification requires the company’s board of directors to oversee data governance, cybersecurity, and the responsible use of AI. Additionally, the board should include at least one director with IT knowledge or experience. Companies are also required to designate a head of security responsible for information security. The board’s duties are expanded to include oversight of data governance and AI usage, including establishing relevant policies and committees. Enhanced IT Security and Cybersecurity The revised notification consolidates the existing chapters on IT project management, IT security and cybersecurity to reduce redundancy, and introduces significant new measures. These include mandatory multi-factor authentication for material systems, enhanced data security measures such as data masking and data leakage prevention, security hardening requirements, web filtering, and mandatory vulnerability assessment and penetration testing at least annually. New requirements are also introduced for mobile application security, API security, and security measures for emerging technologies such as cloud computing and post quantum cryptography. The cybersecurity framework now encompasses identification, protection, detection, response, and recovery. The draft also introduces source code review
Read More