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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: Rules and Procedures for the Issuance of Insurance Policy, the Offering of Insurance Policy, and the Reimbursement of Indemnity under a Life Insurance Contract via Electronic Means B.E. 2560 (2017) (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 priv