Insurance intermediaries in Thailand can be classified into agents and brokers. Both types must be licensed by the Office of Insurance Commission (OIC) and are required to take an exam. An insurance agent must be an individual who is domiciled in Thailand, while an insurance broker can be either an individual or a corporate entity. In general, an insurance agent must represent one insurance company exclusively. However, an insurance agent may represent another insurance company, with consent from the insurance company it is already representing.
No.
Yes. However, there is a limit prescribed by law. In general, the first year's commission of a life insurance agent/broker shall not exceed 40% of the first-year premium. The commission for a non-life insurance agent/broker is generally capped at 18% of the premiums received for such sale.
Yes. In principle, an insurance company shall be jointly liable with its insurance agent for the damages that such agent causes when acting for the insurance company.
No. However, banks acting as insurance brokers shall not force customers to purchase insurance from them or from a specific insurance company. Banks shall also not force customers to purchase insurance from a specific insurer as a condition for approving loans and shall allow customers to purchase insurance from any insurance companies or through any brokers.
There is no restriction in this regard. However, only commissions paid by insurers are subject to the prescribed limit explained in question 4.
In principle, insurance premium must be approved by the OIC and cannot be altered except by the OIC. Insurance companies are therefore prohibited from offering rebates and special benefits in addition to those specified in the policy. However, these requirements apply only to insurance companies. Therefore, strictly speaking, there is currently no legal restriction for agents or brokers to offer rebates or give special benefits to customers. The new Insurance Acts will likely extend such restrictions to agents and brokers.
No express restriction prohibits insurers from appointing offshore agents or brokers. Therefore, to the extent permissible by foreign law, insurance companies are generally allowed to appoint onshore licensed agents and accept business from offshore brokers, provided that insurance companies have no active role in securing the business. In other words, they must only be approached by offshore brokers/agents at the brokers or agents' own initiative.
Yes. In offering insurance policy for sale via telephone, an insurance company must manage the people offering insurance for sale via telephone to act or omit to act according to legal requirements under the telemarketing regulations. If the prospect does not want to be insured or contacted, the insurance agent must stop the conversation immediately. If the prospect wants to know the source of their details, the insurance agent must inform the prospect of the source before finishing the conversation. When being permitted by the prospect to offer insurance for sale, the insurance agent must ask for permission to record the conversation. If allowed to record the conversation, the insurance agent must send the prospect a confirmation of the recording. The recording must continue throughout the conversation and must be maintained as evidence for the same period as the contract. If not allowed, the insurance agent is barred from recording any conversation.
Yes. In February 2017, the OIC announced specific notifications that aim to regulate insurance activities undertaken via electronic channels. The notifications stipulate that all activities conducted through electronic means must be carried out in accordance with the OIC's regulations, including regulations on market conduct and advertising and must comply with the Electronic Transactions Act, B.E. 2544 (2001) in terms of the level of security procedures and the requirements for a reliable electronic signature under the said act. The offering of insurance products via electronic channels may only be conducted by an insurer, broker company and/or bank (with the insurer's consent in the case of a broker company or bank).
An insurer must provide proper information on the method of claiming a compensation payment, and there must be a process for the insured/beneficiary to identify themselves via electronic channels before any compensation is paid. All compensation must be paid to the insured or their beneficiary's account (as the case may be). Insurers, brokers and banks must have in place procedures to manage personal data privacy, arrange for independent audits to assess the information technology systems, and register with the OIC before implementing the regulated electronic activities. Any outsourcing of services to third parties requires the approval of the OIC in order to
ensure that the service provider complies with these requirements under the notifications.
There is currently no specific law governing personal data. Personal data may be exploited without the consent of the data subject if that use does not unlawfully injure the data subject's personal data rights. However, any use of personal data in a way that unlawfully injures the right to personal data, intentionally or negligently, would violate the Constitution and may constitute a wrongful act (a tort) under the Thai Civil and Commercial Code. In addition, the use of personal data by certain segments of the business sector — such as telecommunications, credit bureaus or financial services — is regulated under specific laws.