LEADING THE WAY
In recent years, the Thai insurance industry has been experiencing rapid growth and transformation. Life insurers have seen improving penetration rates and demographics, changes in the personal tax regime, increasing foreign investment, better corporate governance, higher profitability and potential industry consolidation.
The general insurance industry is emerging from the financial difficulties caused by the 2011 floods, while recent growth has been supported by the first-car policy and is underpinned by general economic expansion. Key trends in the near future are likely to emphasise industry consolidation with a reduction in the number of companies, enhancements in operational effectiveness, risk and capital management, and the use of new technology in product distribution.
The Office of the Insurance Commission (OIC) is working closely with the industry on an extensive programme of regulatory reform. Its aims are to support the growth, development and efficiency of the Thai insurance industry, promote effective competition and consumer choice in insurance product markets. As well, the reforms are intended to bring Thai regulations in line with international standards to ensure greater consumer confidence in the solvency of insurance companies and better understanding of insurance products, also help prepare the Thai industry for the onset of the Asean Economic Community (AEC).
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