The Office of Insurance Commission (OIC) has published the new revisions over the life and non-life insurance investment regulations (last revised in 2015), which will provide new opportunities to insurers in Thailand. The new regulations came into effect on 30 November 2019, covering the following areas.
1. Private fund management
The new regulation officially endorses life insurance companies' private fund management operations, enabling life insurance companies to have better capability to offer wealth management services to customers.
2. Wider choices for foreign investment
Currently, insurance companies can hold 10 percent or more shares in foreign insurers that are licensed in the ASEAN countries. Under this third amendment, insurance companies may invest in the shares of foreign insurers licensed in any country.
3. Being an agent supporting unit sales and repurchase is prohibited
Neither life insurance companies nor non-life insurance companies can act as an agent supporting the sale and repurchase of units.
4. OIC permission for security business lifted
Under the present regime, insurance companies can engage in security businesses only when written consent from the OIC is provided. When the third amendment comes into force, insurance companies can engage in businesses (e.g., being a marketing agent of a private fund; a private fund manager; or an investment advisor) without prior permission from the OIC; only notification to the OIC will be required.