Magazine Table of Contents
Thailand: Regulator issues bancassurance guidelines for clarity
Source: Asia Insurance Review | Nov 2016
The Office of the Insurance Commission (OIC) and the Thai Bankers’ Association have issued bancassurance guidelines in response to numerous complaints from customers.
About 30% of the 12,000 complaints a year received by the OIC involve bancassurance. More than half of the complaints arose over misunderstandings, reported The Nation, citing Mr Chuchatr Pramoolpol, OIC Deputy Secretary General. He said that selling insurance from bank branches needs to meet the same standards as at any other channel.
The guidelines clarify that an insurance policy is not a deposit product of a bank, the buyer can ask to see the licence of the bank staff who offers the insurance policy, the buyer has a right to decline to buy insurance and the bank cannot use the purchase of insurance as a condition to approve lending or any transaction.
The Thai Bankers’ Association has confirmed that it will separate insurance services from bank deposit counters. Premiums from bancassurance stood at THB123.4 billion (US$3.5 billion) for the first half of this year, representing 45.3% of total premiums.