Thailand: New insurance regulations take effect on 1 January
Source: Asia Insurance Review | Feb 2019
The Office of Insurance Commission (OIC) has issued new rules covering the issuance and offering insurance policies by insurers, and the duties of non-life agents, brokers and banks. The regulations have been in force since 1 January 2019.
In a commentary on the regulations, the law firm Tilleke & Gibbins says that the provisions require the directors and executives of an insurance company to produce an internal policy, a business plan, and business strategy, in writing, for the purpose of promoting tangible and effective fair dealing with customers. These must be rolled out to all of the company’s employees and insurance intermediaries.
Companies must conduct risk management in respect of conducting business, exercising fair treatment, and dealing with customers, including:
- Preparing and developing product wording and premium rates
- Advertising and promotion of insurance products
- Collecting, storing, and securing customers’ personal data
- Servicing insureds
- Handling claim compensation and monitoring benefits and
- Handling complaints.
In addition, insurers must not induce the insured to cancel another insurance policy; provide untrue or misleading information, or omit any material information; or require customers to buy insurance as a condition for providing other services.
Insurers must publicly disclose the details of their intermediaries (e.g. names and licence numbers). Companies must ensure that their intermediaries comply with the regulations. The company must notify the OIC of any non-compliance by an intermediary. A