Name
Global FinTech Guide
Country _ Name
Thailand
SectionTitle
InsurTech
Body
InsurTech is composed of the words 'insurance' and 'technology'. It is used as a collective term for the application of modern technologies in the domain of insurance services.

Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.

Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer's insurances.

Introduction

Attitude of the country towards InsurTech-services

Some insurance companies in Thailand have already used the IoT (internet of things) in providing insurance services to the customers – for example, to collect behavioural information on the use of motor vehicles to calculate premiums, and to provide usage-based insurance.

With a positive view toward the benefits of InsurTech in enabling access to insurance that fits customers' needs and lifestyles, insurance companies will likely develop and adopt technologies in providing insurance services to the customers.

According to the OIC's Insurance Development Plan Volume 4 (2021–2025), one of the strategies to be undertaken is to develop and support the capacity of insurance businesses in adopting technology in their businesses, and to promote Thailand as an InsurTech hub connecting start-up businesses with tech firms.

Legal affairs

Obligations and requirements to provide InsurTech-services

Operation of insurance business is subject to a licensing requirement under the Life Insurance Act B.E. 2535 (1992) for life insurance products, and the Non-Life Insurance Act B.E. 2535 (1992) for non-life insurance products. The Office of Insurance Commission (OIC) is the supervisory authority for both life insurance and non-life insurance businesses, including brokers and agents.

Life Insurance

The issuance and offering of life insurance policies and reimbursement of indemnity must comply with Thailand's electronic transaction laws and must not be in contradiction with the country's anti-money laundering laws or any other similar laws. This is stipulated in the OIC's Notification Re: Criteria and Procedures for the Life Insurance Companies’ Issuing and Offering-for-sale of Insurance Policies and for the Life Insurance Agents’, Life Insurance Brokers’, and Banks’ Operations, B.E. 2563 (2020) and Re: Criteria and Procedure for the Issuing and Sales Offering of Insurance Policies, Loan under Insurance Policies and Payment under Life Insurance Contracts by Electronic Means, B.E. 2566 (2023) (Electronic Life Insurance Notification), which applies to life insurance companies, life insurance brokers, and financial institutions licensed as life insurance brokers (Life Insurance Financial Institutions).

In general, insurance policies offered for sale via electronic means require approval from the registrar of the OIC, and in offering such policy, certain information as specified in the Electronic Life Insurance Notification must be disclosed to the prospect customers. Moreover, the offering of an insurance policy via electronic means can only be carried out by life insurance businesses, life insurance brokers, and Life Insurance Financial Institutions. Moreover, life insurance brokers and Life Insurance Financial Institutions must first obtain consent from the relevant life insurance company.

In terms of security measures, life insurance companies must implement (or have a life insurance broker or Life Insurance Financial Institution implement) policies and procedures on privacy and personal data management. Their information technology systems must be certified by an independent licensed auditor, and it must be registered with the OIC prior to carrying out transactions. Any planned additions of or alteration to the registered electronic transactions must first be reported to the OIC.

Life insurance companies, life insurance brokers, and Life Insurance Financial Institutions must also comply with other relevant notifications, including the OIC’s Notification Re: Criteria and Procedures for the Life Insurance Companies’ Issuing and Offering-for-sale of Insurance Policies and for the Life Insurance Agents’, Life Insurance Brokers’, and Banks’ Operations, B.E. 2563 (2020).

Non-Life Insurance

Similar requirements to the Electronic Life Insurance Notification, but relating to non-life insurance, are in the OIC's Notification of OIC Re: Criteria and Procedures for the Non-Life Insurance Companies’ Issuing and Offering-for-sale of Insurance Policies and for the Non-Life Insurance Agents’, Non-Life Insurance Brokers’, and Banks’ Operations, B.E. 2563 (2020), and Re: Criteria and Procedure for the Issuing and Sales Offering of Insurance Policies, Loan under Insurance Policies and Payment under Non-Life Insurance Contracts by Electronic Means, B.E. 2566 (2023) (Non-Life Insurance Financial Institutions). For example, under this notification insurance policies to be offered for sale via electronic means likewise require approval from the registrar of the OIC, and certain information must be disclosed to prospective customers.

Non-life insurance companies, non-life insurance brokers, and Non-Life Insurance Financial Institutions must also comply with other notifications, including Criteria and Procedures for the Non-Life Insurance Companies’ Issuing and Offering-for-sale of Insurance Policies and for the Non-Life Insurance Agents’, Non-Life Insurance Brokers’, and Banks’ Operations, B.E. 2563 (2020).

Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area

The OIC foresees the necessity of developing insurance laws and regulations to respond to the rapid growth and development of technology. In 2020, the OIC established the Centre for InsurTech, which aims to encourage insurance technology innovations and function as a one-stop-service point for relevant entities.

The OIC also set up a regulatory sandbox for insurance, which enables companies to test their innovations by providing actual services to consumers within specific circumstances and under the framework stipulated by the OIC.

Further laws and regulations are likely to be developed by the OIC to respond to technological developments. As the technology evolves, it is important that the insurance companies keep pace with the changes and maintain compliance with all security requirements and regulations.

Economic conditions

Market size for InsurTech-services and biggest companies in this business area

Information on the market for InsurTech-services in Thailand is not available.

Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area

Considering the rapid development of technology, it is undeniable that technology will become the major factor for the growth of businesses and therefore, it is expected that the InsurTech will expand in the future. The traditional insurance services have been developed to more InsurTech nowadays. Insurance companies and brokers have been exploring to adopt advanced technology, including AI tools, in providing insurance services to customers across the country. New players have also been tried to enter the InsureTech market in Thailand. For example, there was a new InsurTech startup, Eazy Digital, providing digital platforms for insurance companies set up in late 2023.

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