Office of Insurance Commission (OIC) Deputy Secretary-General for Legal Affairs and Inspection Adisorn Pipatworapong highlighted that the OIC has identified instances of foreign entities operating without proper insurance business, agent, or broker licenses under the Life Insurance Act and the General Insurance Act B.E. 2535 (1992) and subsequent amendments, reported local Thai news.
These unlicensed actors have been submitting fraudulent applications, falsely presenting themselves as legitimate insurance companies to gain credibility and mislead the public into purchasing insurance policies, resulting in financial losses.
The OIC has recognised the gravity of the situation, noting the public distress it has caused and the negative impact on the reputation of the insurance industry.
To address these emerging threats, the OIC, together with Mr. Jom Jirapaet, Assistant Secretary-General for Legal Affairs and Litigation, is implementing new measures to combat cyber-enabled fraud. They have engaged in discussions with representatives from global technology companies, including Apple and Google, as well as relevant government agencies such as the Electronic Transactions Development Agency (ETDA), the Personal Data Protection Committee (PDPC), the Fiscal Policy Office (FPO), and the Bank of Thailand (BOT).
During the meetings, Mr. Adisorn emphasised that any insurance business operating in Thailand must obtain a license from the Minister of Finance, and insurance agents or brokers must also be licensed by the Registrar before offering policies to the public.
The discussions focussed on leveraging technologies available on platforms such as the Apple Store and Google Play Store to prevent and suppress fraudulent activity.
The OIC plans to collaborate with both Apple and Google to investigate and remove applications linked to unlicensed insurance providers, as well as individuals or entities operating as unlicensed agents or brokers in Thailand.
This is intended to protect the public from falling victim to scams. Since these unlicensed apps and foreign insurance entities are not regulated by the OIC, any losses suffered by policyholders, including denied or incomplete claims, or instances where the company ceases operations without settling claims are unlikely to be recoverable.
Moreover, these foreign companies often have no assets within Thailand, making it extremely difficult to identify responsible parties and pursue legal action.