The Office of Insurance Commission (OIC) is proceeding with the second phase of regulatory reforms to strengthen the stability of insurance companies and elevate proactive supervision in response to six "Mega-Risks."

Mr. Chuchat Pramoolpol, Secretary-General of the OIC, delivered a special lecture titled "The Future of Thai Insurance: When New Risks Reshape Consumer Mindsets" at the Insurance Communication Forum 2026. Held under the theme "Insurance for All: Building Trust through Communication in a Changing World" and organized by the Thai General Insurance Association at the Eastin Grand Hotel Sathorn Bangkok, the event addressed the development trajectory of the Thai insurance system amidst rapidly evolving risks. He emphasized the importance of bolstering the stability and security of insurance companies through legal amendments, enhanced risk management, and the development of proactive supervisory tools. These measures aim to build confidence and maintain the insurance sector's capacity to provide continuous protection to the public.

The world is currently facing six major risks—or "Mega-Risks"—that are complex and interconnected, impacting both policyholder needs and insurance business operations. These include: 1. Economic and financial risks arising from stagflation (slow economic growth coupled with inflation), high household debt, and volatility in financial markets and interest rates. These factors may force individuals to choose between debt repayment and maintaining insurance coverage, while insurance companies face volatility in investment returns and claims costs.

2. Social and demographic risks. The transition toward an aging society—with the elderly population projected to reach nearly 28% of the total by 2040—is driving up medical expenses and the demand for pension insurance, even as the working-age customer base shrinks. 3. Climate and disaster risks: Events such as floods, storms, wildfires, and earthquakes are becoming increasingly severe—exemplified by the 2025 Hat Yai floods and earthquakes in Myanmar—leading to higher claims burdens and reinsurance costs, while the public seeks coverage that facilitates rapid recovery from disasters.

4. Technology and cyber risks: Threats such as data breaches, ransomware attacks, deepfakes, and AI-driven fraud pose significant challenges for insurance companies that handle vast amounts of personal and health data. 5. Fraud risks: The use of AI to generate realistic fake images, audio, and video makes detection increasingly difficult, compelling the business sector to develop predictive fraud detection systems while enhancing the security of data and insurance transactions. And 6. Geopolitical risks: Wars and international conflicts impact energy costs, transportation, supply chains, and the marine and aviation insurance sectors.

These evolving and interconnected risks necessitate that insurance companies maintain robust financial positions and capital reserves, implement effective risk management systems, and possess the capacity to absorb large-scale losses. Without compromising the settlement of claims or obligations to policyholders, strengthening the stability and solvency of insurance companies is paramount; financial distress within a company could adversely affect the public, business partners, and a wide range of stakeholders. Consequently, the Office of Insurance Commission (OIC) is proceeding with amendments to the Life Insurance Act and the Non-Life Insurance Act—specifically the second group of regulations focused on enhancing stability and solvency—to elevate supervisory standards in alignment with the evolving landscape and international benchmarks. These measures cover the qualifications of executives and major shareholders, the independence of key professionals (such as actuaries), risk-based capital maintenance, data collection and disclosure, and intervention protocols for companies facing difficulties. The ultimate goal is to "identify risks early and intervene before damage occurs," thereby mitigating impacts on policyholders and safeguarding the stability of the insurance system as a whole.

The OIC is also committed to enhancing Enterprise Risk Management (ERM) and the Own Risk and Solvency Assessment (ORSA) framework. This involves requiring insurance companies to integrate risk management with business strategies, capital management, and board-level decision-making. Furthermore, the OIC is developing tools such as Risk Heatmaps to analyze and prioritize risks, as well as a Composite Risk Rating (CRR) methodology. By integrating risk, financial, and operational data, the OIC aims to implement supervisory measures tailored to the specific risk profile of each company. At the same time, emphasis is placed on... Stress testing—encompassing both a systemic assessment of the insurance sector and an analysis of company-specific risks—is conducted to evaluate solvency and liquidity adequacy, as well as the readiness of crisis management measures. This ensures that insurance companies can maintain stability and honor their obligations to policyholders even when facing severe scenarios.

The OIC Secretary-General added that these efforts are crucial to driving the Thai insurance system toward the goals of the 5th Insurance Development Plan (2026–2030). The plan aims to build a stable and resilient insurance system capable of withstanding emerging risks and large-scale catastrophes, acting as a "National Risk Buffer"—a mechanism to absorb economic and social shocks—while simultaneously developing data systems and disaster management mechanisms.

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