The previous week, the OIC issued several measures to support insurance companies facing liquidity problems due to the huge increase in claims for Covid insurance. According to the statement from the OIC, Asia Insurance's late reimbursement of compensation is considered a violation or non-compliance with the Commerce Ministry's rules regarding the payment of compensation or the return of insurance premiums by non-life insurance companies. Asia Insurance must increase capital and raise its capital adequacy ratio to meet the levels required by law within 30 days from the date of the order, as well as provide a progress report every seven days. To ensure transparency, Asia Insurance is expected to compile a complete and up-to-date list of existing claims, and accelerate the payment of compensation in accordance with conditions prescribed in the contracts. Its direct insurance claims stood at 721 million baht, with accumulated losses of 285 million and total liabilities of 4.4 billion.

Source: Bangkok Post September 25, 2021 00:00 UTC