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Report of the Property Insurance Committee

1. National Catastrophe Insurance Fund
The government has established the National Catastrophe Insurance Fund and launched the “Catastrophe
Insurance Policy” as well as organized a catastrophe insurance MoU signing ceremony on March 28, 2011. As a

result, the Committee and the Office of Insurance Commission has prepared the Catastrophe Insurance Policy, fire
and catastrophe policy, property protection from catastrophe insurance, catastrophe insurance in excess of the fund
and other related riders to support the scheme. A number of 54 companies joined the project.

2. A Joint Project to Develop Flooding Area Map and Assessment Model for Underwriting, Phase II
The Committee and the Geo-Informatics and Space Technology Development Agency (GISTDA) jointly
carry out a project to develop flooding area map and assessment model for underwriting, phase II by analyzing
satellite image information and satellite information from other systems in order to prepare information that show the
areas where are flooded every year and the flood risk assessment mapping of each sub-district as well as to

develop the central insurance information standard.

3. Amendment in Fire and ALL Risk Premium Rates
The Committee has submitted a letter to ask the Office of Insurance Commission to amend the
Commissioner’s Order on Premium Rates of Fire and All Risk Insurance by repealing all requirements related to the
cap of maximum sum-insured amount and the requirement that insurance companies must reinsure fire and all risks
with domestic reinsurer, in a case where the loss ratio in the past 3 years is at an average of not more than 30% of
the amount of 3 year premium. Insurance companies are required to reinsure with domestic reinsurer at the rate of
30% of the sum-insured. The Office of Insurance Commission has issued a Commissioner’s Order No. 7/2555,
dated April 7, 2011 to repeal such requirement.

4. Report on Local Retention
The Thai General Insurance Association had asked the Office of Insurance Commission to relax the regula-
tion, requiring all insurance companies to reinsure the risks with domestic reinsurer and the OIC has agreed and
issued a Notification on “Criteria, Methods and Conditions on Reinsurance by Non-Life Insurance Companies, B.E.
2555, dated June 1, 2011 and repealed the Commissioner’s Order No. 9/2547 on Local Retention, dated September
17, 2004.

5. Joining the “Heavenly Bangkok” MoU Signing Ceremony
The Thai General Insurance Association joined the “Heavenly Bangkok” MoU signing ceremony, organized

by the Bangkok Metropolitan Administration to promote safety in high rising buildings. The general insurance
companies provide a discount on premium of fire insurance policy for the business operators who install fire fighting
equipment as required or in addition to the requirement by law.

108 รายงานประจ�าปี 2555 | Annual Report 2012