Recent Developments and Future Plans for the Actuarial Profession in Thailand

Amornthip Chansrichawla, FSAAugust 1st, 2006

Thai Insurance Thai Insurance IndustryIndustryOverviewOverview

Number of insurance companies

Line of business

DomesticCompanies

Foreign Branches

Total

Life 23 1 24

Non-Life 64 5 69

Health 5 - 5

Reinsurance 1 - 1

Total 99 33 66 9999

Premium Distribution in 2005

2,338 Million US$: 2,338 Million US$: 3535%%Non-LifeNon-Life

4,4154,415 Million US$Million US$ : : 6565%%LifeLife

Direct Premium Growth

Year

Total business Life Non-Life

Amount%

change

Amount%

change

Amount%

change

2002 4,68819.27

3,040 22.41 1,648 13.87

2003 5,38214.80

3,509 15.44 1,873 13.63

2004 6,06912.76

3,982 13.47 2,087 11.42

2005 6,75311.28

4,415 10.88 2,338 12.04

2006* 7,47510.69

4,857 10.00 2,618 12.00

*Estimate figuresFigures in Millions of US$

Financial Position as of 2005

Item LifeLife Non-lifeNon-life TotalTotal

AssetsAssets 16,269 3,745 20,01420,014

LiabilitiesLiabilities 13,749 2,158 15,90715,907

Capital Capital fundsfunds

2,520 1,587 4,1074,107

Unit: Million US$

Insurance PenetrationInsurance PenetrationLifeLife Non-lifeNon-life TotalTotal

UK 8.92 3.68 12.60

Switzerland 6.73 5.02 11.75

Japan 8.26 2.25 10.51

France 6.38 3.14 9.52

USA 4.22 5.14 9.36

Australia 4.17 3.85 8.02

World average 4.55 3.43 7.99

Singapore 6.02 1.48 7.50

Asia average 5.58 1.79 7.37

Malaysia 3.52 1.88 5.40

ThailandThailand 1.941.94 1.581.58 3.523.52

PR China 2.21 1.05 3.26

India 2.53 0.65 3.17

Vietnam 1.35 0.68 2.02

Philippines 0.91 0.59 1.49

Indonesia 0.63 0.68 1.31

Premiums as % of GDP in 2004Premiums as % of GDP in 2004

Insurance PenetrationInsurance Penetration

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00

UK

Switzerland

Japan

France

USA

Australia

World Avg

Singapore

Asia Avg

Germany

Malaysia

Thailand

PR China

India

Vietnam

Philippines

Indonesia

Life

Non-life

THAILANDTHAILAND

Thailand Insurance Thailand Insurance PenetrationPenetration

0

0.5

1

1.5

2

2.5

3

3.5

4

2536 2537 2538 2539 2540 2541 2542 2543 2544 2545 2546 2547

Penetration

Recent Developmentsfor the Actuarial Profession in the Non-life Business

The establishment of the ‘Insurance Premium Rating Bureau’

Actuarial certification of Claims Reserves

The Insurance Premium Rating Bureau

Initiated in 2003 as a department within GIA

The commissioner agreed on the principles of IPRB establishment in 2004.

IPRB commenced operations on April 4, 2005.

Why was IPRB established?

A mechanism to support industry readiness for the liberalized market environment.

One of the key initiatives to support premium rating deregulation plan of the regulator.

IPRB Mission

Provide insurance statistics and actuarial analysis for the members to realize vision for a competitive, efficient and stable insurance industry.

How to achieve the mission? IPRB invests in: People - build actuarial skills. Process - find excellent working

process both for internal and external related parties.

Technology - owns a dynamic & secure IT infra-structure.

Key Actuarial Skills Needed for the Non-life Business

Ratemaking & Individual Risk Rating

Loss Reserving Risk Classification

Future Plans for the Actuarial Profession in Thailand

Society of Actuaries of Thailand

Founded in 1975 To provide programs for continuing

education, to support research and to provide a forum for discussion of actuarial issues

Links with regional associations No proscribed role in regulations Certified Actuary by Ministry of

Commerce Profession is little known

Thai Insurance Industry Development Master Plan (2006-2011) Promote efficiency, stability,

competitiveness of insurance companies

Risk based capital & risk based supervision

Professionalism Good Governance Public Company Act Product Innovation Self regulation Insurance Premium Rating Bureau

Current Environment Realization of critical need to

develop actuaries and support the actuarial profession

Council for Development of Life and Non-life insurance Industry

Master Plan Insurance Industry Development (2006-2011)

Federation of Thai Insurance Organizations

Insurance Premium Rating Bureau

Proposed Development of Actuarial Profession in Thailand SOAT restructured to represent

comprehensively actuaries in all areas of practice

Work with Regulators to introduce legislative changes on qualification, roles and responsibilities of actuaries

Seek the support of the IAA in developing the society into full member

Our Challenge

Create the framework for the development of technically competent and professionally reliable actuaries to ensure that public interest is served and to promote a competitive and stable insurance industry.