Thailand Office of Insurance Commission warns non-life insurance brokers not to cancel policyholders’ policies under premium instalment deals and signals licence revocation risk

The Thailand Office of Insurance Commission (OIC) issued an enforcement warning to non-life insurance brokers against exercising policy cancellation rights in the name of policyholders, particularly in connection with arrangements where brokers facilitate premium instalments, and said breaches may be sanctioned up to licence revocation. The OIC highlighted practices where brokers pay premiums to non-life insurers on behalf of insureds and separately enter into standard-form agreements for the insured to repay the broker in instalments; if instalments are missed, the broker cancels the policy in the insured’s name and receives the premium refund. It described these agreements as credit-like arrangements outside the broker’s legal duties, potentially containing unfair and prohibited terms, and creating a conflict of interest given the broker’s role as the insured’s representative. The OIC also stated that non-life insurers remain obliged to provide coverage until the policy expires. The OIC said it has asked the Thai General Insurance Association to notify its members and relevant broker counterparties.