Thai Group Holdings loses chief executive as claims rise
Thakorn Piyapan has resigned as chief executive of SET-listed Thai Group Holdings (TGH) effective from Dec 1.
The company has appointed Chotiphat Bijananda as acting chief executive.
Mr Chotiphat, TGH's chairman of the executive board, yesterday told the Stock Exchange of Thailand that the company also approved the appointment of Boontuck Wungcharoen as vice chairman.
Mr Thakorn took over the position on Nov 1, 2020, after resigning from the Bank of Ayudhya.
TGH's statement did not say why he has resigned from the company.
TGH is a holding company that has mainly operated in the life and non-life insurance business. Its core business is Southeast Insurance, which is one of the insurance companies that have been hit by a surge in claims for Covid-19 insurance with a lump-sum payment.
Previously, many policyholders filed complaints against the company for its late compensation reimbursements. In response, the company explained that the delay was due to more than 1,000 insurance claims per day filed during August and early September.
The company said it accumulated over 20,000 claims during the period.
A rapid increase in claims for Covid-19 insurance has caused financial difficulties for many insurers in recent months as total compensation for Covid-19 insurance rose to over 9.4 billion baht as of the end of August.
Due to losses from Covid-19 claims, several insurance companies are now facing liquidity problems and have delayed compensation payments.
According to the Thai General Insurance Association, total Covid-19 claims are expected to exceed 10 billion baht by the end of September.
The Office of Insurance Commission (OIC) last week ordered Asia Insurance 1950 to temporarily cease providing non-life insurance policies, effective from Sept 23, saying the company's financial status is unstable and the insurer currently doesn't have the capacity to pay claims on time.
Asia Insurance announced on the company's website that Covid-19 insurance claims increased considerably during August and September, causing the delayed payments, and assured customers that the company was fixing the problems and would resume operations again.