Regulator to launch database on insurance agents and brokers
The Office of the Insurance Commission (OIC) has developed a database on insurance fraud or wrongdoing by agents and brokers.
The system is scheduled to start operating in May 2024 with the information on agents and brokers to be shared among insurance companies that recruit agents and engage brokers, according to local media reports citing the OIC. It allows insurers to screen intermediaries before working with them.
The objective is to increase the confidence of the public in the insurance sector.
Data as of 5 April 2024 showed that there were a total of 561,377 individual agents and brokers in the Thai insurance market, comprising 233,174 life insurance agents, 21,137 general insurance agents, 126,970 life insurance brokers, and 180,096 non-life insurance brokers.
The OIC has found that in the past, there were three main types of wrongdoing:
1. Premiums had been collected by intermediaries but not sent to insurers.
2. Misinformation leading to customers misunderstanding their insurance coverage and exclusions.
3. Recommending that policyholders cancel their existing insurance policy to acquire a new policy, leading to losses suffered by the insured.
The system will classify the intermediaries according to four categories that will be denoted by the colours red, orange, yellow, and green.
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Category
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Details
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Red
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Agents or brokers currently suspended or who have had their licence revoked for no more than 5 years
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Orange
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Agents or brokers whose licences were revoked more than five years ago or who have a record of having committed fraud or wrongdoing
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Yellow
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Agents or brokers who are under investigation given indications that their conduct might result in insurance fraud
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Green
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Agents or brokers with a clean record. They have no history of misbehaviour and have never had their licences revoked.
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