OIC adjusts criteria for selling or giving away movable or immovable property to insurance company directors from 1 Feb. 67.
The OIC revised the criteria for requesting approval for the sale or grant of real estate or real estate or the purchase of property from company directors. Persons involved in life insurance companies and non-life insurance companies, B.E. 2567, effective from February 1, 67 onwards.
Mr. Somprachoke Piyatanon Assistant Secretary Business and Investment Supervision Division Office of Insurance Commission revealed that
Based on important policies and operational directions of the Office of the Insurance Commission, OIC has hastened to improve various criteria to be in line with the said policy. The regulatory criteria that come into effect on February 1, 2567 include:
Registrar's announcement regarding requesting approval for the sale or grant of real estate or immovable property or purchase of property from the company's directors. Including people related to company directors of life insurance companies and general insurance companies, B.E. 2567
“Improving laws and related regulatory criteria The guidelines for issuing new rules and standards for regulating insurance companies must be flexible regulatory rules that are more in line with the current business environment and context. If the insurance company can carry out transactions flexibly and based on appropriate risk management. It will encourage the insurance business to grow sustainably.”
The essence of this update is to be consistent with the principles of other regulatory agencies.
by transactions related to company directors Including people related to the directors of that company It is necessary to establish regulatory criteria to ensure that transactions that occur are conducted according to normal commercial terms, are transparent, and are not transactions with conflicts of interest (Conflict of Interest).
In this regard, the OIC has set criteria that reduce limitations and create flexibility for actual implementation, such as setting a value limit that previously required approval before making a transaction in the case of purchasing property from the first baht. or specify conditions for the company to enter into investment transactions in other businesses in accordance with the announcement of the Insurance Business Supervision and Promotion Commission regarding investments in other businesses of life insurance companies and non-life insurance companies, B.E. 2556 and amendments. By reporting to the registrar after completing the transaction, etc.
Mr. Somprachok said that for a summary of the main points of the announcement, they include:
1. In the case of sales transactions Give real estate to company directors and related persons or purchase real estate from company directors and related people. Must receive consent from the board of directors and approval from the registrar.
2. In the case of transactions that are under the OIC announcement Subject: Investment in other businesses of life/casualty insurance companies, B.E. 2556 and amendments Insurance companies are not required to obtain prior approval of transactions.
3. In the case of transactions other than 1 and 2 If the cumulative value of transactions with directors and related persons exceeds one million baht per year The insurance company must obtain approval from the registrar before conducting a transaction, and
4. Insurance companies must report transactions to the registrar in all cases. and disclose items in the financial statements and financial position
However, for insurance companies to be able to operate their businesses with stability and sustainable growth. There is a need to have a work system that is transparent, verifiable, and able to manage risk appropriately in every transaction, especially transactions involving company directors. Including people related to company directors This is considered a transaction with a high chance of conflict of interest.
Therefore, the OIC needs to establish measures to supervise insurance companies so that insureds and the public can be confident that insurance companies conduct business appropriately. In determining any measures, OIC takes into account the impact of stakeholders. insurance company assured and the people are important
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