Post on 12-Jan-2016
Recent Developments and Future Plans for the Actuarial Profession in Thailand
Amornthip Chansrichawla, FSAAugust 1st, 2006
Thai Insurance Thai Insurance IndustryIndustryOverviewOverview
Number of insurance companies
Line of business
DomesticCompanies
Foreign Branches
Total
Life 23 1 24
Non-Life 64 5 69
Health 5 - 5
Reinsurance 1 - 1
Total 99 33 66 9999
Premium Distribution in 2005
2,338 Million US$: 2,338 Million US$: 3535%%Non-LifeNon-Life
4,4154,415 Million US$Million US$ : : 6565%%LifeLife
Direct Premium Growth
Year
Total business Life Non-Life
Amount%
change
Amount%
change
Amount%
change
2002 4,68819.27
3,040 22.41 1,648 13.87
2003 5,38214.80
3,509 15.44 1,873 13.63
2004 6,06912.76
3,982 13.47 2,087 11.42
2005 6,75311.28
4,415 10.88 2,338 12.04
2006* 7,47510.69
4,857 10.00 2,618 12.00
*Estimate figuresFigures in Millions of US$
Financial Position as of 2005
Item LifeLife Non-lifeNon-life TotalTotal
AssetsAssets 16,269 3,745 20,01420,014
LiabilitiesLiabilities 13,749 2,158 15,90715,907
Capital Capital fundsfunds
2,520 1,587 4,1074,107
Unit: Million US$
Insurance PenetrationInsurance PenetrationLifeLife Non-lifeNon-life TotalTotal
UK 8.92 3.68 12.60
Switzerland 6.73 5.02 11.75
Japan 8.26 2.25 10.51
France 6.38 3.14 9.52
USA 4.22 5.14 9.36
Australia 4.17 3.85 8.02
World average 4.55 3.43 7.99
Singapore 6.02 1.48 7.50
Asia average 5.58 1.79 7.37
Malaysia 3.52 1.88 5.40
ThailandThailand 1.941.94 1.581.58 3.523.52
PR China 2.21 1.05 3.26
India 2.53 0.65 3.17
Vietnam 1.35 0.68 2.02
Philippines 0.91 0.59 1.49
Indonesia 0.63 0.68 1.31
Premiums as % of GDP in 2004Premiums as % of GDP in 2004
Insurance PenetrationInsurance Penetration
0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00
UK
Switzerland
Japan
France
USA
Australia
World Avg
Singapore
Asia Avg
Germany
Malaysia
Thailand
PR China
India
Vietnam
Philippines
Indonesia
Life
Non-life
THAILANDTHAILAND
Thailand Insurance Thailand Insurance PenetrationPenetration
0
0.5
1
1.5
2
2.5
3
3.5
4
2536 2537 2538 2539 2540 2541 2542 2543 2544 2545 2546 2547
Penetration
Recent Developmentsfor the Actuarial Profession in the Non-life Business
The establishment of the ‘Insurance Premium Rating Bureau’
Actuarial certification of Claims Reserves
The Insurance Premium Rating Bureau
Initiated in 2003 as a department within GIA
The commissioner agreed on the principles of IPRB establishment in 2004.
IPRB commenced operations on April 4, 2005.
Why was IPRB established?
A mechanism to support industry readiness for the liberalized market environment.
One of the key initiatives to support premium rating deregulation plan of the regulator.
IPRB Mission
Provide insurance statistics and actuarial analysis for the members to realize vision for a competitive, efficient and stable insurance industry.
How to achieve the mission? IPRB invests in: People - build actuarial skills. Process - find excellent working
process both for internal and external related parties.
Technology - owns a dynamic & secure IT infra-structure.
Key Actuarial Skills Needed for the Non-life Business
Ratemaking & Individual Risk Rating
Loss Reserving Risk Classification
Future Plans for the Actuarial Profession in Thailand
Society of Actuaries of Thailand
Founded in 1975 To provide programs for continuing
education, to support research and to provide a forum for discussion of actuarial issues
Links with regional associations No proscribed role in regulations Certified Actuary by Ministry of
Commerce Profession is little known
Thai Insurance Industry Development Master Plan (2006-2011) Promote efficiency, stability,
competitiveness of insurance companies
Risk based capital & risk based supervision
Professionalism Good Governance Public Company Act Product Innovation Self regulation Insurance Premium Rating Bureau
Current Environment Realization of critical need to
develop actuaries and support the actuarial profession
Council for Development of Life and Non-life insurance Industry
Master Plan Insurance Industry Development (2006-2011)
Federation of Thai Insurance Organizations
Insurance Premium Rating Bureau
Proposed Development of Actuarial Profession in Thailand SOAT restructured to represent
comprehensively actuaries in all areas of practice
Work with Regulators to introduce legislative changes on qualification, roles and responsibilities of actuaries
Seek the support of the IAA in developing the society into full member
Our Challenge
Create the framework for the development of technically competent and professionally reliable actuaries to ensure that public interest is served and to promote a competitive and stable insurance industry.