Keywords: Mazars, Thailand, Legal, Office of the Insurance Commission, insurance, Ministry of Finance
16 May 2016
Currently, under the Life Insurance Act and Non-Life Insurance Act, a foreign entity is limited to investing less than 25% of an insurance company’s equity. This investment can be increased to 49% of the company’s equity with the approval of the Office of the Insurance Commission and the Ministry of Finance.
Over the past year, although the insurance industry has grown, foreign entities have not been able to make significant investments in the insurance business, as governmental authorities have not issued new business licences for insurance companies. Therefore, most foreign entities have had to purchase shares in an insurance company from existing shareholders.
In response to the growth of the insurance business, and to support direct investment by foreign entities, the Office of the Insurance Commission will submit to the Ministry of Finance a proposal to increase the amount of equity that a foreign entity can hold to 75%. The Office of the Insurance Commission will make a decision on the form of the proposal and submit it to the Ministry of Finance within one month.