OIC prepares for Thai insurance business sector Market expansion – investment in ASEAN
Date 06 Mar 2022 time 23:15
Reveals the results of a study of Thai insurance companies to be stable. financially reliable and able to manage risks well have a strong foundation continually growing
Dr. Suthiphon Thaweechaikarn, Secretary-General of the Insurance Commission (OIC) revealed that on March 3, 2022, the Office of Insurance Commission (OIC) joined with EY Corporate Services Co., Ltd. to open a seminar “Summary of the study on the guidelines for the liberalization of trade in financial services in the insurance sector Under the ASEAN Framework Agreement on Trade in Services” in the form of an online seminar via Microsoft Teams with executives and staff from the OIC, representatives from the Thai Life Assurance Association. Thai General Insurance Association Thai Insurance Brokers Association Association of Life Insurance Agents and Financial Advisors Association of Actuaries of Thailand Association of Disaster Assessors Thai casualty surveyors and assessors trade association Life insurance and non-life insurance companies attend seminar The purpose of this seminar is to enhance knowledge and understanding of insurance market conditions and important growth trends of insurance business in ASEAN. and business processes to increase competitiveness and prepare to strengthen the insurance business in line with the rising trend of trade and investment within the region. as well as pushing the Thai insurance sector to play an important role in expanding investment under the ASEAN Framework Agreement on Trade in Services.
The Secretary-General of the OIC gave an important opening remarks at the seminar that The study found that Thai insurance companies are stable. financial credibility Most of the companies have registered capital or maintain a higher capital than what is required by law. and able to manage risks well. In addition, many insurance companies have strong fundamentals. is growing steadily There is a wide variety of products and various sales channels. In addition, Thailand has a reputation for medical treatment. This builds confidence and confidence among policyholders that they will receive quality medical care. As a result, foreigners come to buy insurance policies and receive health services in Thailand. (Only certain types of products) is a branch that has the potential to enter the insurance market of ASEAN member countries.
In this regard, with the changing context of the new world (New Normal), whether it is a change in consumer behavior in terms of using the Internet and increasing online shopping As a result, consumers are familiar with the use of new technologies, thus giving them an opportunity to sell insurance products through online channels both domestically and internationally. rising It will be an opportunity for health insurance products and pension insurance products.
As for the relaxation of foreign shareholders Must consider the availability of the insurance business primarily From the study, the easing of foreign shareholder ratios would support the establishment of an agreement on ASEAN trade liberalization. in the field of insurance business achieves its objectives and to strengthen relations between Thailand and other ASEAN members; promote economic growth. Create choices for consumers It will also enhance the capital potential of the Thai insurance business. This makes the Thai insurance business have a more stable financial position as well as strengthening and enhance the competitiveness of the Thai insurance market
However, if there is an liberalization of trade without the business sector being ready This may result in a small insurance business that is not strong in terms of both capital and operational efficiency. may be dominated by foreign companies And there may be an invasion of the market from foreign companies that have advantages in terms of Economy of Scale. Therefore, it is necessary to accelerate the strengthening of the Thai insurance business in order to be ready to compete.
Most of the participants in the seminar He saw that the relaxation of foreign shareholders would have a positive impact on the insurance business. Increase capital for the business sector There is a transfer of expertise and technology. It also causes the development of new products. This will create an alternative for consumers. In addition, most of the seminar participants saw that Thai insurance products are outstanding, such as auto insurance, health insurance, accident insurance. and small insurance Therefore, it can respond to market demands effectively.
“The results of the study will be a tool that will help increase competitiveness and prepare you to strengthen the insurance business in line with the rising trend of intra-regional trade and investment. as well as pushing the Thai insurance sector to play an important role in investing in ASEAN However, with the relaxation of foreign shareholder proportions, Thailand’s current law is fairly flexible and in line with Thailand’s obligations under the World Trade Organization. But if there is a need to relax more, it should be done with caution. and must take into account the readiness of the Thai insurance sector as well,” said the OIC Secretary General.
