Tuesday, May 22, 2018

Thailand tightens rules on bank insurance sales

Brokers will clearly have to state if a transaction is insurance or a deposit, after Thailand’s Office of Insurance Commission (OIC) introduced steps to tighten banks’ insurance policies.

Complaints of misunderstanding between purchasers and brokers recently prompted the Thai Bankers Association (TBA) and the OIC to establish new rules on how to purchase and sell insurance.

Specifically, the OIC discussed with the bankers’ group how to set regulations and manage the sale of insurance policies through banks, said OIC’s deputy secretary general for inspection Choochat Pramoonphol at a press conference.

The TBA, for its part, has agreed that it will separate insurance services from bank deposit counters. As a warning to violators, Pramoonphol said that the OIC is authorised to punish insurance companies that refuse to comply with the new policy.

According to an Oxford Business group report, penetration rates have stayed low in Thailand even though the market has a considerably high number of players.

There are at least 57 non-life insurers and 24 life insurers.

 

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