Thailand will continue to enhance the system of inspection and supervision of insurance companies through the examination form.
A press release issued by the Office of the Insurance Commission (OIC) quotes OIC deputy secretary general for legal and audit Adisorn Pipat Worapong saying, “the Audit Division has followed up on the results of the Examination Form and supporting documents related to the assessment responses submitted by all companies to monitor and evaluate the performance of the Board of Directors.”
The Examination Form has been developed by the audit team led by OIC assistant secretary general Mr Soraj Raksakulchai to evaluate the performance of the board of directors. Sub-committees and internal control functions of insurance companies in the dimension of monitoring and monitoring the main risks related to the compliance of insurance companies with laws that must be carried out under the laws of the OIC Office.
This requires all insurance companies to prepare and submit an assessment form with supporting documents related to the response to the assessment, and the sub-committee in charge of such agency shall consider the answer and sign the certification of the response by the chairman of the sub-committee.
The results of the Examination Form in all categories must be circulated to all the board of directors for consideration and approval and signature by the chairman of the board of directors to the OIC Office from the first quarter of 2025 onwards.
Mr Pipat Worapong said the audit division has followed up on the results of the Examination Form and supporting documents related to the assessment responses submitted by all companies to monitor and evaluate the performance of the Board of Directors.
The overall evaluation results show that most insurance companies have complied with the law as prescribed by the OIC Office. The role and functions of various sub-committees within the company are emphasised, including effective and adequate internal governance.
It was, however, found that some insurance companies still had deficiencies in complying with certain legal requirements, such as the supervision of the independent committee, the evaluation of the performance of the board of directors, the monitoring of the performance of the risk management committee through the board of directors, and the evaluation of the performance of the insurance products committee.
The OIC has issued a letter of instruction to the companies to correct the issues found in the assessment responses. In addition, the results of the preparation of the Examination Form have been well received by many companies and feedback has been given to the preparation of the assessment that it has contributed to stimulating and pushing the board of directors.
Mr Worapong said, "In the long term these measures will reduce the negative impact on business operations that can lead to damage to the insured and the public in the future. It will also help strengthen the confidence of the insured, the public and stakeholders in the insurance industry.”