OIC to step up measures against fraud

The Office of Insurance Commission (OIC) is coordinating with health insurance-related agencies to curb a rapid increase in incidents of insurance fraud.

Despite the turmoil caused by the pandemic, the OIC insists capital adequacy ratio or CAR of the insurance industry remains healthy.

OIC’s secretary-general, Suthiphon Thaveechaiyagarn, said the Consumer Protection and Insurance Participation Committee has approved three additional measures to curb potential fraudulent claims as referenced on social media.

The three measures include the strict enforcement of relevant laws, publicity of law enforcement and examples, and criminal complaints against offenders who incite others to follow them.

Mr Suthiphon said offenders may be subject to penalties for disseminating false information or advertising the sale of illegal products. He said the OIC will coordinate with the Ministry of Digital Economy and Society, Food and Drug Administration and the Office of the Consumer Protection Board (OCPB) to detect and prosecute offenders.

Meanwhile, the insurance sector will also help provide knowledge and understanding pertaining to the legitimate usage of insurance as a tool for risk management to the public.

He said the OIC will also cooperate and share information with the National Health Security Office, the Social Security Office and the OCPB to monitor inappropriate behaviour.

Mr Suthiphon said the OIC has conducted stress tests for both a moderate scenario and a severe scenario.

The severe scenario is in which domestic vaccine rollouts fail to curb the outbreak of new Covid variants in 2021 with new vaccines developed and distributed in 2022 and 2023, respectively.

“The impact on insurance companies may be harsher than last year, especially for companies selling Covid insurance. However, both life and non-life insurance companies’ CAR will remain strong according to the test results,” he said.