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5. Decrease in Income Tax Rate and Losses from Flood Affected Corporate Income Tax
The Thai General Insurance Association has submitted a written request to ask the Revenue Department for
an extension of a period in which general insurance companies can include losses from the flooding catastrophe in

2011 as an expense in the calculation of corporate income tax from 5 years to 10 years. This flood which was beyond
control and expectation of general insurance business had caused great losses to general insurance companies
due to high amount of claims. The Revenue Department is reviewing the request.

6. Problem Related To the Certification of Financial Statement According to Accounting
Standard.
The Committee has set up a guideline for solving problems and coping with obstacles occurred from the
adjustment of tax rate and losses from the flood which affected the business performance as reflected in financial
statement. The Committee has circulated this guideline to all member companies and informed to related agencies

such as the Office of Insurance Commission, the Revenue Department and the Federation of Accounting Professions
of the movement.

7. Request for Extension of Regulatory Relaxation Period to Mitigate Financial Problem Caused by
Flood Catastrophe
Since the regulatory relaxation period given by the Office of Insurance Commission to mitigate the negative
effects of the flood in 2011 will end on March 31, 2013, the Thai General Insurance Association has submitted a
written request for an extension of such relaxation period to March 31, 2014. The request covers the following areas.
7.1 Capital requirement-related: The Thai General Insurance Association asked the OIC for an exclusion of
flood-related claim reserve from the calculation of insurance risk-based capital, credit risk from
reinsurance and concentration risk of the reinsurer, caused by the flood.

7.2 An extension of a period to exclude the PAD at 75 percentile value from the calculation of flood related
claim reserve before reinsurance and net claim reserve after reinsurance.
7.3 Asking the OIC to agree with the insurance companies’ plan to allocate flood claim reserve and to allocate
assets for liabilities and contractual obligations at the rate of at least 60% and to use the outstanding
premium from direct insurance and outstanding fund in the part of flood claim payment, recovered from
reinsurance companies in the allocation of reserve.

สมาคมประกันวินาศภัยไทย | Thai General Insurance Association 121