The Office of the Insurance Commission (OIC) ordered The One Insurance to suspend the sale of new non-life insurance policies, effective from Dec 1, and expedite compensation payments for existing customers.
The regulator ordered the company to quickly resolve its financial position within the specified period, not accept new customers, and pay claims for existing customers as usual, said OIC secretary-general Suttipol Taweechaikarn.
The order came after the regulator found The One Insurance had an unstable financial position, with liabilities exceeding assets; an inadequate legally mandated reserve of assets; insufficient liquid assets to cover claims; and a below-the-threshold capital adequacy ratio.
The company also has a large number of outstanding claims that are affecting its financial position and operations.
The OIC also found The One has no intention of revising its financial position. As a result, the regulator cannot be assured that the company is able to repay its debts in accordance with its obligations to the insured or the public.
There have been late compensation payments, said the OIC.
The act constitutes a violation or failure to comply with a notification from the Commerce Ministry regarding the rules, procedures and periods for delayed compensation payments or the refund of insurance premiums.
The OIC's board ordered The One Insurance to temporarily suspend the sale of non-life insurance policies, rectify its financial position, and have a sufficient capital adequacy ratio as required by law within 15 days from Dec 1.
The company must also prepare a summary report detailing insurance policies and compensation set to be indemnified for the insured, and submit the report to the OIC on every business day.
The regulator ordered OIC officers across the country to inspect The One Insurance's branches and representative offices and ensure the sales of new policies are halted.
If the OIC finds the company has not complied with these conditions, the regulator will implement harsher legal measures as a next step, Mr Suttipol said.
