OIC delivers “insurance securities – insurance reserves”

Bangkok, Office of the OIC delivers "insurance securities - insurance reserves" worth 840 billion baht to the custodian, hoping to build confidence. insurance business Mr. Chuchat Pramunphon, Secretary-General of the Insurance Business Regulatory and Promotion Commission (Secretary-General of the OIC), revealed that operating an insurance business requires the placement of collateral and insurance reserves in accordance with the Life Insurance/Casualty Insurance Act B.E. 2535. and additional amendments The law requires insurance companies to place securities with the registrar. To provide collateral for business operations, the law also requires life insurance companies to allocate insurance reserves for insurance policies that are still binding. And non-life insurance companies must allocate a reserve for premiums that have not yet become revenue of the company (Unearned Premium Reserve: UPR) as required by law. Securities worth 25 percent of the allocated portion must be placed with the Office of the OIC. According to information as of February 29, 2024, 71 insurance companies have invested assets of Thai government bond companies. Bank of Thailand bonds State enterprise bonds Treasury bills of the Ministry of Finance Other debt instruments issued by the Ministry of Finance State enterprise bonds Limited company bonds, stocks, promissory notes, bills of exchange and fixed deposits Placed as collateral and insurance reserves with the Office of the OIC, totaling 849,280.98 million baht. But because such securities have high value and are of great importance to the public and insurance companies, the Office of the OIC must take care of them. With strict safety, therefore, on March 4, 2024, the OIC Office has already verified the accuracy and completeness of the insurance securities and insurance reserves. Therefore, the said securities were deposited with Bangkok Bank Public Company Limited as a custodian to store and maintain the said securities with stability and safety. For securities or assets, the Office of the OIC will only accept assets that have relatively high liquidity. The Office of the Insurance Commission regularly checks the value of securities to ensure that the company places such money strictly in accordance with the law. Source: Thai News Agency