Asian News - Thailand: New regulatory head to sharpen industry competitiveness
Source: Asia Insurance Review | Jan 2016
Dr Suthiphon Thaveechaiyagarn, the newly appointed Secretary-General of the Office of Insurance Commission (OIC), aims to strengthen the insurance industry’s regulatory framework so as to sharpen the competitiveness of the sector.
Dr Suthiphon, who assumed the OIC’s top position last November, plans to improve industry regulations by amending existing laws and creating new ones, while striking a balance between business operations and consumer protection, reported The Bangkok Post. For instance, the OIC plans to develop a new law, the Marine Insurance Act.
Stability is focus and some regulations may be relaxed
Industry stability is a key focus. The OIC will support insurers seeking to strengthen their capital base and pave the way for foreign insurers to jointly invest with local operators. But mergers and acquisitions will not be the sole avenue through which local businesses can be improved. Size does not matter because strong smaller companies can also survive, Dr Suthiphon said.
But he commented that some regulations might need to be relaxed in order to help small insurers adjust to them, reported The Nation newspaper. For example, all insurers will have to meet a capital adequacy ratio of 150%, but some companies might need time to increase their capital to comply with the rule. “Thai insurance companies cannot escape the globalisation trend, but the increase in capital should be executed gradually,” he explained.
Dr Suthiphon said that the OIC must raise its role in serving as an information channel for consumers because, if they have more confidence about insurance and they know that they will be treated fairly, market penetration will increase. The regulator will support better access to insurance for disadvantaged consumers such as low-income earners, farmers, the elderly and the disabled, he said.