The Thai Office of the Insurance Commission (OIC) plans to issue new regulations to introduce risk-based capital requirements for non-life insurance companies later this year. These requirements are intended to link the amount of capital to be maintained by each insurer to its risk profile.
The risk-based capital regime is expected to apply initially only to the motor insurance business of non-life insurance companies and is expected to be calculated by reference to claims paid. Motor insurance represents the largest segment of the Thai non-life insurance market.
The OIC anticipates that adjustments to the applicable ratio will be needed following its introduction. The adjustments will take into account other risk factors, such as counterparty risks, operational risks and investment risks, with the final ratio expected before 2010.