New OIC chief sets sights on new rules
The new secretary-general |of the Office of Insurance Commission has outlined four plans, focusing on improving regulations as this would provide the infrastructure base for increasing competitiveness in the insurance sector.
Succeeding Pravej Ongartsit-tigul as head of the OIC with effect from November 1, Sutthipol Taweechaikarn, who has experience in the legal field, said improved regulations would help reduce barriers in the way of doing insurance business, especially when it comes to expanding in the nearby markets of Cambodia, Laos, Myanmar and Vietnam (CLMV).
He raised the example of the Marine Insurance Act, which is based on a similar Act in the United Kingdom, saying that Thailand should have its own Act as such a law would increase the competitiveness of Thai insurers in CLMV countries.
"The OIC will be in charge of a feasibility study into the Marine Insurance Act. We will set up a study team and propose the essentials for Thailand having its own Act to the OIC’s board of directors," he added.
Strengthening Thai insurance companies in Asean is another strategic focus for the new secretary-general.
Sutthipol said the OIC would hold discussions with insurance regulators in CLMV countries to push the idea of an Asean Single Insurance Market, adding that regulations in the region should be harmonised to support insurers preparing to expand their business into CLMV markets, in particular.
Meanwhile, in regard to those companies that might not have the capacity to expand abroad, they should be protected as well, he stressed.
He said regulations should not, however, be a barrier to either insurers or consumers, and some new regulations might need to be relaxed in order to help small insurance companies adjust to them.
For example, all insurers will have to have a capital adequacy ratio of 150 per cent, but some companies might need time to increase their capital to comply with the regulation. "Thai insurance companies cannot escape the globalisation trend, but the increase in capital should be executed gradually," he explained.
Sutthipol also said the OIC must increase its role in serving as a convenient and clear information channel for consumers because, if they have more confidence about insurance and they know that they will be treated fairly, market penetration will increase.
Both the call centre and the official website of the OIC will therefore be revamped.
Meanwhile, the OIC will ask| the Bank of Thailand to assist |the information effort by warning any banks deemed not to be providing clear information about selling insurance to their customers.
