Thailand’s Finance Ministry has cancelled the operating licence of The One Insurance due to chronic liquidity issues and failure to settle COVID-19 claims.
The insurer, formerly known as Assets Insurance, was unable to raise its capital to meet regulatory requirements and settle COVID-19 claims for lump sum payments, the Bangkok Post reported. The licence’s termination took effect on Monday.
The One Insurance’s liquid assets totalled THB162 million (SG$6.57 million), while its outstanding claims ballooned to over THB2.44 billion. The secretary-general of the Office of the Insurance Commission (OIC), Suttipol Taweechaikarn, said the firm is no longer fit to conduct business due to its extremely unstable financial position.
The insurer’s shareholders have decided not to increase its capital, rendering it unable to meet OIC requirements, Suttipol said.
Following the revocation of the insurer’s licence, the Finance Ministry assigned a liquidator to take over the company’s assets and meet its obligations to customers.
Policyholders of The One can choose to claim their premiums or have their policy moved to another insurer. If the customer chooses to move the premium to a new insurer, they can receive a 10% discount, up to THB500, Suttipol said.
A huge spike in COVID-19 infections in the second and third quarters of 2021 have caused a surge of claims which several insurers have encountered difficulty in paying out.
In September, the OIC ordered Asia Insurance 1950 to stop accepting new customers due to liquidity concerns.
The Thai General Insurance Association (TGIA) held an emergency meeting to assess the liquidity crisis affecting the Thai insurance market, TGIA president Anon Vangvasu said.