At the opening ceremony for the 13th National Anti-Corruption Commission (NACC) training course, chairman of the Office of the Insurance Commission (OIC) Lawaron Sangsanit delivered a special address.
As part of the address, Mr Sangsanit listed four risks that insurance tools should play a role in managing, namely:
- Geopolitical risks: He said global conflicts can impact business operations, such as supply chain disruptions or property damage, which can be managed through insurance, such as business interruption insurance.
- Disaster and natural disaster risk: Varying weather patterns, such as drought and floods, as well as unexpected events like earthquakes, all reflect the need for systematic risk management. Mr Sangsanit also noted that currently, Thailand has limited disaster-related insurance coverage, and said the present landscape presents an opportunity to promote the widespread use of this coverage.
- Technology and cyber risks: Technology, particularly AI, is rapidly transforming industries, bringing with it new risks such as hacking or cyberattacks that could impact business operations. To address this risk, he pointed out that Thai insurance companies have begun developing cyber insurance products that cover system restoration costs, business interruption damages and liability for customer data leaks.
- Risks related to an ageing society: Mr Sangsanit made it a point to note that Thailand is entering a fully ageing society, with 14.74% of the population aged 65 and over, while the birth rate has decreased to only 1.3 people per household. This has resulted in an average annual increase in health care costs of 6.8%, leading to the need for health insurance policies that are more responsive to the needs of the elderly in the future.