On August 31, 2018, Thailand’s Office of Insurance Commission (OIC) implemented a notification replacing the Notification of the OIC Re: Rules, Procedures, and Conditions on Reinsurance of Life and Non-life Insurance Companies B.E. 2555 (2012). Tilleke & Gibbins reported the changes when the new article was in draft form, and they have passed into law unchanged. For a breakdown of the new provisions, which came into force on September 1, 2018, please click here.
Non-Life Insurance Disclosure Requirements
On the same day, the OIC issued a notification on the criteria, procedures, and conditions for disclosure of information by non-life insurance companies. The notification will take effect on October 1, 2018.
The notification requires insurers to make the following information available on their website (and through other channels if requested by the OIC) to the extent that doing so does not affect that company’s ability to compete in the market:
- Company background history, location, and business objectives;
- Business strategy (to the extent that it is not confidential and does not affect the company’s competitiveness);
- Details of core products and services;
- Contact information;
- Procedures for claim submission, consideration, and compensation;
- Good corporate governance framework and internal control process, including the operational details to comply with such framework and process;
- Quantitative and qualitative data relating to its enterprise risk management and asset liability management;
- Quantitative and qualitative data relating to its underwriting risks, which are foreseeable and material and which could affect the financial status of the company, reinsurance management, concentration risk, and the connection between its reserves and such risks;
- Quantitative and qualitative data relating to its valuation, methods, and assumptions for assessing its liabilities from its insurance contracts;
- Quantitative and qualitative data relating to its directions, objectives, processes, and types of investment and other business (i.e., non-insurance business), its profitability from insurance underwriting, claims compensation statistics, profit from its investments, premium adequacy, and other relevant ratios;
- Quantitative and qualitative data relating to its reserve adequacy, directions, objectives, and process for managing its reserves, including assessment of the adequacy its reserves; and
- Financial statements and remarks, including financial statements for the prior calendar year, audited and commented on by the auditor, and quarterly financial statements, audited by the auditor.
The company must certify the accuracy of its disclosed information, which must be clear, precise, current, and reliable. The information should illustrate the trends of the business operation, and enable comparability between insurance companies. The company must update general information annually. Material changes to the information must be updated within 30 days of the material change itself.
The form, conditions, and period for disclosure will be further prescribed by the Registrar.
For more information on the practical effect of these requirements, and on how to ensure that your company is compliant, please contact Athistha (Nop) Chitranukroh on [email protected] or +66 2056 5600.