The Thailand Office of Insurance Commission (OIC) outlined plans to upgrade supervision of the insurance sector through group-wide supervision aligned with Insurance Core Principles (ICPs) Principle 23, reflecting the growing prevalence of insurance groups and their expansion into other businesses. The approach is structured in two stages. Under “Solo Consolidation”, supervision would cover an insurer and subsidiaries in which it holds at least 20%, applying supervisory principles consistent with those for insurers and requiring reporting of investment transactions between the insurer and its subsidiaries within 72 hours, or as soon as the transaction occurs, on a “use and file” basis. “Full Consolidation” would extend to the ultimate parent and entities it controls or holds, directly or indirectly, at least 20%, including associates and all subsidiaries; where the ultimate parent is foreign or the group is supervised by the Bank of Thailand or Thailand’s Securities and Exchange Commission, the OIC may use a supervisory college or other cooperation arrangements to avoid duplicative oversight. The OIC noted it has already sought industry input on the overall principles for Solo Consolidation and received no objections. Work is underway to bring the Solo Consolidation requirements into force, with further input being gathered on group governance, enterprise-wide risk management, risk and financial stability assessments, internal controls, and reporting templates. The OIC also plans additional engagement with domestic and overseas financial and insurance supervisors to complete the Full Consolidation framework by 2026.

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