Insurance

The insurance industry was certainly impacted by the unprecedented flooding damage in the second half of 2011, but the disaster is leading to reform and better approaches to risk management in the public and private sectors. The damage is also expected to increase awareness of the value of insurance and raise Thailand’s below-average insurance penetration. At the same time, increased re-insurance costs have driven non-life premiums up considerably. The government has established a catastrophic risk fund that should mitigate these premium rises and safeguard against future natural disasters. Meanwhile, a new risk-based capital framework is expected to rationalise capital adequacy ratios and spur consolidation in the sector. This section has interviews with Pravej Ongartsittigul, Secretary-General, Office of the Insurance Commission; and Sutti Rajitrangson, President, Thai Life Assurance Association.