Insurers have ample reserves
The Office of the Insurance Commission (OIC) insisted yesterday that insurance companies had maintained enough reserves to settle claims from the country's worst floods.
In particular, the combined reserves of general insurers have reached Bt1.15 billion, which can cover the risk from the worsening inundation.
The insurance industry, including life and general insurers, had garnered Bt265.43 billion in insurance funds as of the end of August, up by 19.52 per cent from the same period last year. Of the total, the life-insurance business accounted for Bt191.14 billion, up 12.82 per cent, and general insurance for Bt74.28 billion, up 12.5 per cent.
By law, both life and general insurance companies have to maintain both an insurance reserve and an insurance fund to ensure smooth claim pay-outs.
Chatra Purnariksha, director-general of the OIC, said the insurance industry reported that in August, total premiums increased 16.51 per cent to Bt39.58 billion.
Of this, life premiums rose by 15.93 per cent to Bt27.78 billion and general-insurance premiums by 17.9 per cent to Bt11.8 billion, of which car insurance took the lion’s share of 61.03 per cent.
During the first eight months, the industry’s total premiums grew by 13.66 per cent to Bt300 billion. Of this, life premiums were up by 12.95 per cent to Bt208.55 billion, while general premiums climbed 15.3 per cent to Bt91.45 billion.
