Thailand’s Office of Insurance Commission (OIC) recently opened a public hearing on draft notifications regarding criteria, procedures, and conditions for naming life and non-life insurance brokerage businesses. The draft notifications aim to establish guidelines for naming and describing such brokerages. Key Principles Licensed insurance brokers must use “life insurance” or “non-life insurance” in their business name. When establishing an office, brokers must display a visible nameplate at the office front, starting out with the Thai words for “life insurance broker office” or “non-life insurance broker office” and the broker’s name; any signs indicating the office location must adhere to these same naming conventions. Inside, offices must display the insurance broker’s license and the power-of-attorney for receiving insurance premiums at the office. Noncompliance with these key principles may result in the OIC taking corrective action. Outlook After the draft notifications pass the public hearing stage, which closes on July 19, 2024, the OIC will consider the feedback and finalize the notifications. The duration of this process depends on the complexity of the notification and the public feedback. Normally, each notification takes at least 3–6 months before issuance. For more details on the OIC’s draft notifications or on any issue concerning insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree Trachukul at [email protected], Thammapas Chanpanich at [email protected], or Sireethorn Wijan at [email protected].

Thailand’s Office of Insurance Commission (OIC) has opened a public hearing period on a draft notification from the Ministry of Finance (MOF) that would relax foreign shareholding and board limits for life insurers. The hearing period runs until May 31, 2024. Key principles of the draft notification are outlined below. Life Insurer Qualifications Life insurers may apply for permission to exceed 49% foreign shareholding or have a majority of foreign directors if: They operate a business that may cause harm to insured parties or the public and either (1) the OIC has directed the company to improve its status or adjust its capital, or (2) the company’s actions may have a significant impact on the insurance industry, causing significant compensation burdens and affecting the company’s capital adequacy ratio (CAR); Their shareholders are unable to increase capital; and They are unable to attract Thai investors to increase the capital necessary to ensure stability and the long-term operation of the business. Foreign Shareholder Qualifications Eligible foreign shareholders must: Be an insurance company or participate in the insurance industry; Have at least 10 years of relevant experience; Demonstrate financial stability and possess a credit rating (or have a parent company with a credit rating) of at least “A” from a reliable credit rating agency; Present a clear business plan, financial resolution plan and strategy, and technological and expertise development plan to develop and promote the company’s efficiency and competitiveness in the industry; and Be capable of investing and increasing the capital to at least THB 2 billion to maintain stability and maintain a CAR of at least 250%. In addition, life insurers are required to present a clear restructuring plan and new organization chart to the OIC for further approval by the MOF. For more details on the MOF’s notification regarding criteria

Thailand’s Office of Insurance Commission (OIC) has released draft Notifications regarding Guidelines for Considering Qualifications and Suitability of Insurance Agents and Brokers to Manage Risks Related to Insurance Fraud for Life and Non-Life Insurance Companies for a public hearing period. The draft notifications set out criteria that life and non-life insurance companies should follow to assess the risk of brokers and agents committing insurance fraud. Risk Rating Under the OIC’s draft notifications, the risk of insurance agents and brokers committing insurance fraud is represented by four color-coded levels, according to the characteristics of the agent or broker. These levels are summarized in the table below. Insurance companies can verify the qualifications and suitability of agents and brokers by accessing information on insurance fraud in the OIC’s database. This access must comply with the Personal Data Protection Act, requiring the consent of the agent or broker whose information is being accessed. For more details on the OIC’s notification, or on any aspect of insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree Trachukul at [email protected], Thammapas Chanpanich at [email protected], or Sireethorn Wijan at [email protected].

Thailand’s Office of Insurance Commission (OIC) has issued a notification announcing new and updated criteria for the approval of capital reductions for both life and non-life insurance companies. The notification was published in the Government Gazette on March 6, 2024. These updates aim to reduce the time required and relax and streamline the procedures for seeking OIC approval for capital reductions. Under the notification, general approval will be granted by the OIC upon submission of an application to the registrar if the capital reduction is to be implemented by way of: Removing registered shares that cannot be sold or that have not yet been issued for sale; or Reducing the share value or the number of shares to mitigate the accumulated loss. The reduction must not affect the share ratio of the shareholders in the financial statement and must comply with relevant laws, regulations, and accounting standards. After granting written approval, the registrar will notify the OIC to arrange for registration by the company. For more details on the OIC’s notification regarding capital reductions for life and non-life insurance companies, or for any issue concerning insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree Trachukul at [email protected], Thammapas Chanpanich at [email protected], or Sireethorn Wijan at [email protected].