Finance Minister Apisak Tantivorawong is urging local insurers to strengthen their financial positions and enlarge their business size, enabling them to insure the government's big-ticket infrastructure projects worth THB3trn ($91.5bn) without reinsuring with overseas companies.
Thai insurance companies now enter into reinsurance agreements with overseas companies because the former are short of capability to cover risk in its entirety, according to a report in The Bangkok Post quoting the minister.
But he stated that the premiums earned on insuring these mega infrastructure projects should be shared among insurance firms with operations in Thailand without reinsuring outside the country.
Mr Apisak said that it is crucial for insurance companies to draw up a master plan in coordination with the planned infrastructure projects, as the government does not want to see insurance businesses in the country dwarfed.
Mr Oran Vongsuraphichet, chief executive of Thaire Insurance, values Thailand's reinsurance market at THB78bn, of which THB5bn is undertaken by the company, THB7bn is reinsured among insurance companies and the remainder by overseas reinsurers.