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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
Thailand’s Insurance Regulator - Insurance Companies
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 - Products 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 - Sales/Advice 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
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 broker or sales person based outside
Thailand v dealing with one in Thailand The advantages and disadvantages of dealing
with a offshore insurance company v a Thai registered company
The Company Question: Advantages of Offshore Insurers
The 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
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/International health insurers offer cover internationally, locally registered
Thai insurers are only good for the local market
This is simply not true - the geographic coverage, range of benefits and restrictions compared
to premiums are comparable
Offshore/international health insurers have superior plans with higher claim limits, fewer
restrictions, a better range of benefit options, etc
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/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
Offshore/international 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
The Bottom Line - Local v Offshore Companies Offshore
Good if you plan on moving countries regularly No other compelling advantages
Local / Thai 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
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 resident No 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
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
Local / Thai 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!