They are subject to the same licensing requirements as the traditional insurers or brokers. However, conducting online insurance transaction is subject to specific regulations prescribed by the local insurance regulator. According to the regulations:
- “Offering for sale of policies via electronic channel” (Online Sale): Apart from the requirements under the Notifications, Online Sale activities are also subject to requirements under OIC regulations on advertisement and insurance intermediaries’ market conduct.
- Insurer’s authorization and reporting requirement: Brokers and applicable banks, with an insurer’s authorization, may also conduct Online Sales. Insurers are required to withdraw if there is any noncompliance with the Notifications by their intermediaries, and they must report such incident to the OIC within seven days
- Approval from the OIC.
- Premium remittance
- Confirmation calls: Once an Online Sale is made, insurers are required to seek confirmation from the customer through telephone calls or electronic channels, such as email, within seven days from the distribution of the policy.
- Free-look period
- Issuing e-policies: An e- signature must be placed by the insurer.
- E-claim payments: Insured persons/beneficiaries must be identified through a process arranged by the insurer before any electronic claims compensation is made.
- Security measures: Online Sales, using electronic means as part of the sale of policies, issuing policies electronically, and paying compensation for claims must comply with the levels of security measures prescribed under the Electronic Transactions Act and the requirements on IT security systems stipulated in the Notifications (e.g., IT systems for providing such online services must be certified by an independent certification body such as CISA, CISM, CISSP, or ISO 27001 Information Security Management).
- Outsourcing: Third-party outsourcing arrangements are subject to the specific requirements stipulated under the Notifications.
The information is not publicly available.
Athistha (Nop) Chitranukroh
Piyanuj (Lui) Ratprasatporn