Fraud stands as a greater threat than capital level

Experts estimate that the new risk-based capital rule (solvency margin) of non-life insurance, which will come into force next September, will hardly affect insurers. The new margin require insurers to have solvency capital standing at 20% of net written premiums.
All insurers, except three of them, have a ratio above the minimum required. Some economists believe that fraud is a bigger threat to insurance companies in Thailand than the level of capitalization. Over the past ten years, five insurers have gone bankrupt because of problems of fraud and not due to inadequate capital.