The Office of Insurance Commission (OIC) explained that Southeast Asia Insurance filed for the termination of its business with the OIC. However, the petition was not approved yet. The statement was in response to Thai Group Holdings Plc having notified the Stock Exchange of Thailand about discontinuing operations at Southeast Asia Insurance Plc.
Thailand’s insurance business regulator has indicated that approval has not been granted for Southeast Asia Insurance to cease operations and that all existing insurance policies are still valid. The office has established a working committee to scrutinize relevant details. The main goal is to preserve the benefits of insurance policyholders and other stakeholders and ensure the legality of the action.
The OIC noted that the General Insurance Fund exists to protect those entitled to payment by insurance claims in case of an insurance company’s license revocation. The fund is also intended to foster stability and reliability for the insurance business.
The office said the fund does not cover cases of an insurance company ceasing its operations, but assured that public concern was unwarranted. It explained that Southeast Asia Insurance cannot shut down or cease operations until it receives approval to do so from the OIC, adding that all current insurance policies are still valid.