SINGAPORE, March 7 (Bernama-BUSINESS WIRE) — Operating losses relating to medical insurance products covering COVID-19 infections have put considerable strain on the operating performance and balance sheets of several Thailand insurers, according to a new AM Best commentary.
In its Best’s Commentary, titled, “COVID-19 Claims Put Thailand Insurers Under Pressure,” AM Best notes that according to the Thailand General Insurance Association (TGIA), most of the COVID-19 claims in the country have come from a short-term policy that pays a sizable lump sum when a policyholder contracts COVID-19. This payment is fixed and does not relate to medical costs incurred by the policyholder. Although the market stopped writing these policies in June 2021, a high volume of risks remains in force through the first half of 2022. Total losses in 2021 related to the lump-sum policies have been estimated at THB 34 billion (USD 1.1 billion), or approximately 19% of the capital and surplus of the industry as of September 2021. The mounting claims have forced four companies to cease operating, and more recently, Thai Insurance and Southeast Insurance—one of the country’s top 10 insurers—applied for regulatory approval to be liquidated in early 2022.
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