Mediaboss Marketing

Following the November 2019 revisions to life and non-life insurance investment regulations, Thailands Office of Insurance Commission (OIC) has published a fourth amendment to the regulations, which came into effect on 29 January 2020. Key revisions are summarized below.

(1) New definitions introduced. To support wider investment opportunities presented in this amendment, and to provide more clarity, certain new definitions are introduced, including overseas financial institution, infrastructure, and private equity, and also definitions regarding derivatives and the healthcare businesses.

Some of the existing definitions have also been revised. These include sukuk, investment unit, and investable asset.

(2) Wider investment opportunities. The fourth amendment allows insurers to invest in private equity, real estate, mutual funds and infrastructure trusts. More importantly, insurers are now allowed to hold shares of an entity offering:

(3) Other key changes. Other changes are also addressed in this fourth amendment, including requirements on:

This amendment expands the investment options for insurers, providing more flexibility and potentially facilitating insurers risk allocation. Insurers are urged to familiarize themselves with these changes to ensure compliance, and to maximize investment opportunities.

Business Law Digest is compiled with the assistance of Baker McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker McKenzie by emailing Danian Zhang at [emailprotected].

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Fourth amendment to Thailand investment regulations - Vantage Asia