Health Insurance for Expats in

Thailand

Should you take out a ‘Local’ - Thailand based plan, or an ‘International’, or

‘Offshore’ plan?

Here are the facts - you make your own decision

A Common Question

• A common question for expats in Thailand is

whether to take out private health insurance with a

Thailand based company, or an international

/‘offshore’ company

• Thai based expats are bombarded with a constant

stream of promotional activity from offshore

insurance companies and brokers encouraging

them to choose the international option, which is

promoted as the best choice

• Is this true? What are the facts?

First, there are a number of things to understand about the

insurance industry

Regulators and Licensing• Every country has regulations - and a regulator - responsible for the

insurance sector

• In Thailand this structure is known as the Office of the Insurance

Commissioner (OIC)

• The regulator is there to make sure the insurance industry is being

operated within certain controls and guidelines, because insurance is

such an important part of the overall economy

• In Thailand as with most countries, the Regulator concentrates on

three areas of control:

The insurance companies

The products

Dealings with customers - esp. sales and customer service

• Ensures insurance companies are adequately

capitalised and remain financially sound at all

times

• Thai insurance companies provide a

comprehensive monthly report and declare all

movements in assets and liabilities to ensure

solvency

• The OIC requires immediate action if any

aspect of the company’s operations is outside

the guidelines - and can suspend a company if

things are not corrected quickly

Thailand’s Insurance Regulator - Insurance Companies

• All insurance products must be approved

• Approval includes terms, conditions and definitions

• It also includes pricing to the consumer and limiting

the commission that can be paid

• Companies must show they are able to pay claims

(in worst cases) and have the systems and

processes to manage their business

Thailand’s Insurance Regulator - Products

• The OIC sets standards for sales people -

qualification/training, conduct, background, levels

of commission, etc

• The OIC looks after the interests of consumers,

handles consumer complaints and has authority

to make decisions companies must follow

• Consumer complaints are normally handled and

resolved quickly. Most are either about

misrepresentation at time of sale or customers

unhappy with a company’s decision re claims

Thailand’s Insurance Regulator - Sales/Advice

What are ‘Offshore’ Insurers?

• ‘Offshore’ insurance companies are registered in a small

country that is normally tax-friendly As long as the

company doesn’t do business in that country it can do

whatever it likes in the rest of the world with no

interference from the regulators

• Offshore insurance companies are registered in places

like Gibraltar, the Seychelles, Bermuda, the Isle of Man,

the Channel Islands, Liechtenstein, Belize, and Monaco

• Regulations in these sort of places are very light, making

it largely up to the company to regulate itself. This

doesn’t always turn out well

Two Separate Issues

When faced with the ‘local v offshore’ question, for Thai based expats

there are normally two quite separate issues to consider

The advantages and

disadvantages of

dealing with a

offshore insurance

company v a Thai

registered company

The advantages and

disadvantages of

dealing with a broker or

sales person based

outside Thailand v

dealing with one in

Thailand

The Company Question: Advantages of

Offshore InsurersThe following statements are often made as reasons expatriates should favour Offshore health insurers

Offshore/international

health insurers are better

at paying claims and offer

superior customer service

compared with Thai

registered health insurers

The Company Question: Advantages of

Offshore InsurersThe following statements are often made as reasons expatriates should favour Offshore health insurers

There is no evidence to

support statements like this.

Offshore insurers start with

the drawback to overcome

that they are not easily

accessible by clients other

than by email/phone

The Company Question: Advantages of

Offshore InsurersThe following statements are often made as reasons expatriates should favour Offshore health insurers

Offshore/International health insurers offer

cover internationally, locally registered Thai

insurers are only good for the local market

The Company Question: Advantages of

Offshore InsurersThe following statements are often made as reasons expatriates should favour Offshore health insurers

This is simply not true - the geographic

coverage, range of benefits and restrictions

compared to premiums are comparable

The Company Question: Advantages of

Offshore InsurersThe following statements are often made as reasons expatriates should favour Offshore health insurers

Offshore/international health

insurers have superior plans

with higher claim limits,

fewer restrictions, a better

range of benefit options, etc

The Company Question: Advantages of

Offshore InsurersThe following statements are often made as reasons expatriates should favour Offshore health insurers

Offshore companies don’t typically

deal with the lower market

segments however the benefits

offered by Thai registered insurers

for the middle/upper market are

comparable - this claim is simply

not true

Offshore/international

health insurers offer

USD, EUR or GPB

currency options

which is better for

expats

Some would agree,

some would not. If an

expat is paid in Thai

baht, there are

advantages in this being

the currency of health

insurance

Offshore/internatio

nal policies are

more easily

portable if you

move countries

This is true and

represents perhaps the

single ‘real’ advantage

of offshore cover to the

expat - but only a small

% who know they will

be moved to another

country regularly

Offshore/international health

insurers are more progressive

and up with the latest industry

developments whereas Thai

registered companies are

somewhat backward

There is no evidence for this and

could be argued in the opposite way

as easily

The Bottom Line - Local v Offshore

Companies

Good if you

plan on moving

countries

regularly

No need to worry about the

regulatory process in Belize or the

Seychelles | OIC provides

reassurance in terms of governing

the products and the company

If there is a problem or you have a

grievance an advocate

empowered to force a settlement

is immediately available

Your dealings with the company do

not always have to be via phone,

email, etc

No other

compelling

advantages

Offshore Local / Thai

The Broker/Adviser Question: The

Advantages of an Offshore Adviser

Not subject to any scrutiny or

requirements relating to

background, qualifications or

conduct when dealing with a Thai

based expat

No legal accountability for the

quality of the advice provided to

a Thai residentNo ability to obtain restitution if

you are not treated correctly -

even if you can find the person

By law not allowed to sell Thai

registered products to you so by

selling ‘what they have’ rather

than what is best for your needs

seldom are your interests placed

ahead of theirs

The Bottom Line - Local v Offshore

Adviser/BrokerOffshore Local / Thai

Can not offer you Thai registered

products even if they are in your

interests

Not subject to locally relevant

regulatory requirements

Able to say what they want

whether correct or not with

impunity

If things go pear-shaped, you are

totally on your own to try and

resolve issues

Subject to entry requirements

and ongoing conduct in order to

retain their license

Subject to the regulator, civil and

criminal prosecution for

inappropriate behaviour

Likely to be more easily

accessible in person if needed

The Decision is Yours

Good luck!

Health | Travel | Personal Accident Insurance

www.PacificCrossHealth.com