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To get ready for the ASEAN Economic Community, the Thai General Insurance Association has commissioned
KPMG Phoomchai business consulting firm to conduct a study on “Impacts of ASEAN Free Market on General Insurance
Business in Thailand” by focusing on the problems and obstacles as well as opportunities of general insurance business.
This study will also focus on the market conditions in 10 ASEAN countries and the preparation of both, offensive and
defensive measures for the AEC.
Situations and changes in the past year that affected the general insurance industry were many such as the
ANTI-MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM: AML/CFT law and the ministerial
rules, issued in accordance with the Financial Action Task Force on Money Laundering which is an international
measure and the great flood at the end of 2011. As a result of this flood, the Cabinet of Ministers resolved to set up the
“National Catastrophe Insurance Fund” to protect the properties of the people and the undertakings of business

operators and to provide access to catastrophic insurance with reasonable premium rate as well as to enable insurance
companies to accept insurance in full capacity and at the lowest premium rate. In order to create confidence among
foreign investors and to ensure that business operators will continue their business operations in Thailand, a number of
54 companies joined the project. At the same time, the Thai General Insurance Association has joined hands with the
Geo-Informatics and Space Technology Development Agency (GISTDA) to develop
the map of flood risk areas to be used as the basis to calculate the cost of insurance
(Phase 2). The plan is to expand the areas from 16 provinces along the Chao Phraya
and Tachin Rivers to all over the country.
The Thai General Insurance Association also improved and developed various
types of insurance policies in accordance with changing social conditions and needs
of the insured such as the liability insurance for logistic service provider, liability for
third party, property risk insurance and business interruption insurance, etc. Moreover,
the Thai General Insurance Association has also worked closely with the Revenue
Department to solve an issue related to tax on insurance business merger. TGIA wants
the Revenue Department to exempt the merging companies from having to include the
insurance reserve in tax payment calculation immediately after the termination of
business operation. The purpose is to promote the merger of business operation.
Finally, I would like to thank all government and private agencies and our
member companies for all the helps and cooperation that make all of our activities
become successful. Also, I’d like to thank members of all the Executive Board and
TGIA staff for the collective efforts that made the TGIA a successful organization and
accepted by the society.

Thank you.

(Mr. Jiraphant Asvatanakul)
President of Thai General Insurance Association

สมาคมประกันวินาศภัยไทย | Thai General Insurance Association 95