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 IssuesWhen 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 offer cover internationally, locally
registered Thai insurers are only good for the local market
Offshore/international health insurers are better
at paying claims and offer superior customer service compared with Thai registered 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/International health insurers offer cover internationally, locally
registered Thai insurers are only good for the local market
Offshore/international health insurers are better
at paying claims and offer superior customer service compared with Thai registered health
insurers
Offshore/international health insurers have superior plans with higher claim
limits, fewer restrictions, a better range of benefit
options, etc
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
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
This is simply not true - the geographic coverage, range of benefits and restrictions
compared to premiums are comparable
Offshore/international health insurers are more progressive and up with the latest industry developments whereas Thai registered companies are
somewhat backward
Offshore/international health insurers offer USD,
EUR or GPB currency options which is better for
expats
Offshore/international
policies are more easily portable if
you move countries
Offshore/international health insurers are more progressive and up with the latest industry developments whereas Thai registered companies are
somewhat backward
Offshore/international health insurers offer USD,
EUR or GPB currency options which is better for
expats
Offshore/international
policies are more easily portable if
you move countries
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
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
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 companyIf 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/Broker
Offshore 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!