Thailand's Office of the Insurance Commission
plans to encourage Asean countries to pool their bargaining power with foreign
reinsurance companies by setting up an Asean natural catastrophe fund, says
Pravej Ongartsittigul, a secretary-general of the OIC.
The OIC
plans to propose the idea at the regional Asean Insurance Regulator meetings
later this year.
Mr
Pravej said the International Monetary Fund and the World Bank earlier agreed
the region should have an Asean catastrophe fund.
"The
[IMF and World Bank] see us as one of the world's most rapidly expanding
regions, and strong funding will support infrastructure to be built in line
with growth," said Mr Pravej.
The
healthy fund would ease concerns about the risks for investors.
The OIC
recently signed a memorandum of understanding with the Financial Service
Commission of Korea (FSC) as both countries agreed to strengthen their
international regulatory cooperation, and the FSC supports a pooled fund, he
said.
The
idea of a pooled re-insurance fund came from the massive flood damages Thailand
suffered last year, as foreign re-insurance companies became wary of Thailand.
Some companies charged its insured clients up to double-digit rate increases
due to higher risk.
However,
after the government kicked off its 350-billion-baht flood-prevention measures
two months ago, insurance premiums have slipped to 1-3% increases, though
Pathum Thani and Ayutthaya rates are still up 3-5%.
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment