The department's director-general Chantra Purnariksha said yesterday that checks of the financial status of all insurance companies - both life and non-life insurers - were expected to be completed in the first quarter of this year. As well, the departments' blacklisting of some companies will be reviewed for decisions on whether to withdraw their licences.

Thailand has 24 life insurance companies and 74 non-life insurance firms. The country's total insurance premiums account for an average 4.6 per cent of domestic consumption. In the first 10 months of last year, total life insurance premiums reached Bt171 billion and 17 per cent of the country's population held a total life insurance policy.

Thailand's overall insurance business is expected to grow by 10 per cent to 15 per cent this year. However, the department believes many companies are facing liquidity problems which could affect policyholders. As a result, it will closely monitor their cash flows and claims payments in order to reduce risks to consumers.

Two companies, Thanasin Insurance and Saha Life Insurance, are on the department's blacklist. Both have to complete restructuring plans and raise capital by the end of this month.

Non-life insurers that are required to restructure their businesses include Union Prosper Insurance, Sampanh Insurance and Thai Medical Care.

Chantra said the department was striving to raise the standard of Thai insurers. Its monitoring measures will help increase business efficiency while protecting consumers from companies with low efficiency. Moreover, to enhance the reputation of the insurance business, it plans to increase good governance.

The department will discuss an action plan on good governance with the General Insurance Association, the Thai Life Insurance Association and the Insurance Agencies' Association at a meeting next week. The meeting will also consider protection measures for consumers.

Representatives of the International Monetary Fund and the World Bank visited the department yesterday to assess its operational plans in terms of supporting both insurance-industry growth and the country's economic growth.

Chantra said the organisations were considering helping Thailand improve insurance business management and the efficiency of personnel. They may also send experts on business evaluation to help train the department's officials.

Petchanet Pratruangkrai

The Nation