Thailand: Rules for online insurance sales to be implemented this year
Source: Asia Insurance Review | Jan 2017
The Office of Insurance Commission (OIC) aims to implement regulations for online insurance sales by early this year.
The regulator has approved draft rules that set out the criteria and procedures for the issuing and offering for sale of life and general insurance products through online channels. Market consultations will be held on the proposed measures.
According to the law firm Tilleke & Gibbins, the key features of the draft rules are as follows:
- Insurance companies, brokers, and banks are permitted to sell insurance products through online channels.
- The wording of all insurance policies sold electronically must receive prior approval from the OIC, and insurance intermediaries may only sell policies electronically once they have received permission from the insurance company.
- Confirmation calls are required within seven days from the issuance of an insurance policy. Insurance companies must record confirmation calls and keep the record for the period prescribed by law.
- Strict liability is imposed on insurance companies over their intermediaries.
- Insurance companies must establish a secured online system to prevent data breaches, conforming with standards required by the Electronic Transactions Act and other related regulations.
In addition to registering with the OIC, insurance companies, brokers, and banks are still required to register with other government authorities in order to comply with other applicable laws.