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

October 2, 2024

Thailand Sets Premium Rates for Policies Purchased Directly from Insurance Companies

Subscribe to Updates

Thailand’s Office of Insurance Commission (OIC) has issued orders announcing the premium rates for insureds who purchase insurance policies directly from life and non-life insurance companies. The orders, which were issued on September 2, 2024, allow insurance companies to set lower premium rates for insureds who purchase insurance policies directly from them, compared to those approved earlier by the OIC.

Under the orders, both life and non-life insurance companies selling insurance policies directly to insureds may set the premium rate below the premium rate earlier approved by the OIC, but the discount may not exceed:

  • 30% of the insurance premium for all types of insurance policies; and
  • 35% of the insurance premium for insurance policies that utilize innovation or are sold through electronic channels. Here, “insurance policies that utilize innovation” means insurance policies that are currently being tested or have successfully met the objectives of the Insurance Regulatory Sandbox or the Product Innovation and Tailor-Made Sandbox, as approved by the OIC.

The insurance companies may set the above two premium rates under the following conditions:

  • The insurance contract must be entered into between September 1, 2024, and November 15, 2024; and
  • The coverage start date of the insurance policy must not be later than December 31, 2024.

For more details on the OIC’s orders regarding premium rates for insureds who purchase insurance policies directly from life and non-life insurance companies, 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], or Sireethorn Wijan at [email protected].

Related Professionals

Industries

Insurance

Location

RELATED INSIGHTS​ 

August 3, 2023
Tilleke & Gibbins’ insurance specialists in Cambodia, Laos, Myanmar, and Thailand have contributed to the Law and Jurisdiction in Insurance and Reinsurance Contracts – Asia Pacific guide produced by RPC. The guide addresses how governing law, jurisdiction, and arbitration clauses are used in insurance and reinsurance contracts. For each jurisdiction in the Asia Pacific region, the guide addresses the following topics: Governing law; Arbitration; Mediation; and Limitations and time bars on claims. The Law and Jurisdiction in Insurance and Reinsurance Contracts – Asia Pacific guide is available below.
Read More
January 12, 2023
Experts from Tilleke & Gibbins’ corporate and commercial team have written the Vietnam chapter of Practical Law’s Insurance and Reinsurance Global Guide, a Q&A-style overview of insurance and reinsurance law in dozens of jurisdictions worldwide. The guide covers: Market trends Regulatory framework and relevant legislation Authorization for insurers, reinsurers, and intermediaries, and ownership restrictions Ongoing requirements and penalties for non-compliance Sales and marketing Transfer of risk Reinsurance contracts and risks Contracts and policies Claims Dispute resolution Insolvency Tax InsurTech Reform To read the Vietnam chapter, please visit the Practical Law website or click on the link below.
Read More
December 26, 2022
Tilleke & Gibbins’ insurance specialists in Yangon have contributed the Myanmar overview to the Insurance and Reinsurance Global Guide, published by Thomson Reuters Practical Law. The guide is a Q&A-style overview of insurance and reinsurance law, with entries from legal experts in 47 jurisdictions worldwide. Tilleke & Gibbins’ Myanmar contribution provides a comprehensive look at the market for insurance and reinsurance in the country, and it covers the following topics: Market trends Regulatory framework Authorization – Laws and bodies, insurance intermediaries, exemptions and foreign insurers, fronting, legal forms, restrictions and insurance activities Ownership restrictions Ongoing requirements Penalties for noncompliance Sales and marketing Transfer of risk Reinsurance contracts and risk Contracts and policies – Content requirements and common clauses, implied terms, customer protections, standard policies or terms Claims – Establishing a claim, time limits, subrogation, third-party claims, insurance of punitive damages, remedies for breach of policy Dispute resolution Insolvency Tax Insurtech The Q&A closes with a brief update on the new draft Insurance Business Law to reform the Myanmar insurance market. Practical Law brings together guides to key legal practice areas around the world for business lawyers. Tilleke & Gibbins contributes many overviews on various legal practice areas for all of the firm’s jurisdictions in Southeast Asia. To read the full Myanmar overview, please visit the Practical Law website.
Read More
September 19, 2022
Tilleke & Gibbins’ insurance specialists in Cambodia, Laos, Myanmar, Thailand, and Vietnam have contributed to the Subrogated Recoveries – Asia Pacific guide produced by RPC Premier Law Firm. The guide addresses how insurers can recover indemnifiable losses. For each jurisdiction in the Asia Pacific region, the guide addresses the following topics: Local legal framework on subrogation; Insurers’ right to subrogate; Investigations prior to subrogated proceedings; Limitation period for subrogated action; Responsibility for costs in subrogated action; Enforcement of judgements for insurers; and Subrogated actions against co-insured parties. The Subrogated Recoveries – Asia Pacific guide is available below.
Read More