The Office of the Insurance Commission (OIC) is considering a plan to set up a screening committee that can suspend or revoke the licences of actuarial mathematicians to prevent risks to insurance firms and policyholders.
Ayusri Kambamlue, assistant secretary-general of the OIC, said the office wants to better protect the benefits of the insured and improve actuarial standards.
The calculation of insurance reserves must use the principles of actuarial science, which requires actuaries with knowledge, understanding and experience.
The insurance reserve is part of the risk-based capital framework that affects the financial strength of an insurance company, said Ms Ayusri.
"If an insured person qualifies to receive compensation, insurance companies must have enough money to pay the insured and be able to calculate the reserves that must be paid to the insured in the future," she said.
"Actuaries licensed by the OIC must perform their duties in accordance with the standards and maintain the ethics of the actuarial profession as determined by the OIC. For actuaries in Thailand to work while maintaining high standards and ethics, it is necessary to have a mechanism to monitor their performance."
The regulator approved the appointment of a committee to consider the suspension or revocation of actuaries' licences. The committee would consist of representatives of the OIC, relevant associations and academics who will consider and investigate the actions of actuaries, which may offer grounds for the suspension or revocation of their licences.
For example, in some cases actuaries may calculate insurance reserves that do not comply with the OIC's operating standards, which may affect the adequacy of the company's insurance reserves to pay compensation to policyholders, said Ms Ayusri.
She acknowledged that in the past, some insurance companies experienced severe liquidity problems because of a large number of insurance claims, such as during the Covid-19 outbreak. Actuaries should calculate the business's balance sheet and assess the risks in the event of a large number of claims, ensuring the company has sufficient capital, said Ms Ayusri.
"The OIC hopes such a committee will help maintain the high standards of actuaries' performance in Thailand and contribute to the stable and sustainable growth of the insurance industry in the future," she said.