Ministry to order insurers to declare financial status
The Commerce Ministry will order 99 insurers - both life- and general-insurance companies - to report their financial status to the Insurance Department as part its plan to create an "early-warning system" for policyholders.
The department is drafting regulations to force insurance companies to report their financial status, a plan that is designed to protect consumers from the risks associated with financially troubled insurers. There are 74 general-insurance companies and 25 life-insurance firms operating in Thailand. The regulation is expected to be launched in September after approval by Commerce Minister Krirk-krai Jirapaet. The ministry also extended to next Wednesday the deadline for Thana- sin Insurance to inject money into its Insurance Reserve Fund and raise it to Bt200 million. Insurance Department director-general Chantra Purnariksha yesterday said the company had previously agreed to a June 12 deadline to achieve that commitment. The company agreed to that after being taken over last week by TSB Trading, a leading Thai trading firm focused on China. However, the company failed to meet that deadline, due to a complicated shareholder restructuring. The company has injected Bt120 million into the fund, and the remainder will be settled by the new deadline. Debt-ridden Thanasin Insurance was taken over by TSB Trading last week, with a total value reaching Bt600 million. Petchanet Pratruangkrai The Nation
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