Covid insurance from opportunity to crisis “Can’t find it, can’t pay” business gradually collapses

The first covid situation at the beginning of last year Insurance business sees it as an opportunity to gain income. different marketing strategiesCOVID insurance And unexpectedly, there will be an increase in the number of infected people in the country in the third wave. until causing a tremor, becoming a crisis in the insurance industry

Only the amount of insurance claimsmeet and pay“It is estimated that over 7 million policies from the total number of covid insurance policies, more than 20 million policies, have affected the delayed claim system. And many companies face liquidity problems. Recently, the Asian Insurance Company Has been revoked non-life insurance business license since October 15, 2021 must use the money for the non-life insurance fund pay compensation instead

In case of revocation of license and closure of insurance company There may be more Other than Asia Insurance Company Because a number of companies are facing the same problem, there is the same chance of being “injured and ruined” as long as the coronavirus control is out of control. and delayed vaccination

Uncertainties with insurance companies from the impact of covid “Assoc. Prof. Dr. Anusorn Thammajai” as an economist stated that at present, a number of insurance companies have liquidity problems. from the initial stage of the covid epidemic The insurance business was affected very little. and turned the crisis into an opportunity The information from the Office of Insurance Commission (OIC) last year. found that the sales of covid insurance policies increased proportion Compared to the total sales of the insurance business 1-2 years ago

until the number of people infected with COVID increases from delayed vaccine administration Failure to control the third wave of outbreaks Causing some insurance businesses that already have a weak financial position collapsed quickly Please be careful in the insurance business. savings cooperative The pawnshop business will have additional liquidity problems. and incurring bad debts in Pico Finance and small hire purchase businesses

“Don’t let the situation escalate. It became the beginning of the financial crisis and could be sooner than expected. Need to expedite spending at least 5-7 hundred billion baht in measures to maintain the level of employment Providing direct grants to the business sector If not, it will cause more than 200,000 SM businesses to lack liquidity. Might have to shut down again and affecting more than 3 million households who will be poorer and insolvent. But if the country can be fully opened and covids do not come back to spread the fourth wave There is no need to provide assistance.”

Several studies suggest that the impact of coronavirus will affect demand for health and life insurance. and lockdown has affected the financial status of low-income families and a very middle class Therefore, the purchase of insurance or paying premiums for this family does not increase. But more insurance purchases occur in corporate and corporate groups or high-income earners.

In the case of Asia Insurance Company from a mistake in risk management and liquidity management cause more liabilities than assets and from the overall economic crisis Long-lasting low yields in the bond market Highly competitive insurance business Including the government sector is unable to effectively manage the disaster impacts from epidemics and flood disasters. This caused the financial position of many insurance businesses to deteriorate rapidly. May spread to other types of financial institutions

“Many insurance companies Not financially strong enough to support COVID-19 claims in billions of baht or more And the number of complaints has continued to increase. when being aggravated by another flood disaster insurance claim will have a weaker financial position.”

In addition to the measures that the OIC has should promote the capital increase to strengthen the insurance company’s position and incentivizing the merger of small insurance businesses. or with other financial institutions and support ultra-low interest loans The bank may cut the policy interest rate further. if necessary To support the insurance business during this period.