The Thailand Office of Insurance Commission has set out expectations for insurers to strengthen corporate governance, risk management and internal controls, emphasizing that formal structures alone do not constitute effective oversight. It linked past financial and operational problems at insurers to weaknesses in these areas, which can develop into asset quality, liquidity and capital adequacy issues. Boards, particularly independent directors, are expected to challenge management proactively, use comprehensive information and ensure that governance, risk and control functions work together effectively. Insurers should embed enterprise risk management and own risk and solvency assessment processes in business decisions rather than treat them as compliance exercises. The authority identified economic conditions and inflation, yield volatility affecting asset and liability management, and increasingly frequent and severe disasters as key risks. Companies should reflect these factors in business plans, product development, pricing, reserves and reinsurance. The expectations reinforce the authority’s broader development of ERM and ORSA based supervisory tools under its risk based supervision approach and its efforts to align Thai insurance governance with international practices.
2026-09-08Thailand Office of Insurance Commission
Thailand Office of Insurance Commission sets stronger governance, ERM and ORSA expectations for insurers
The Thailand Office of Insurance Commission expects insurers to strengthen board oversight and ensure governance, risk management and internal controls operate effectively in practice. ERM and ORSA should inform business decisions, including responses to inflation, yield volatility and disaster risk, rather than serve only as compliance tools.