The Thai Life Assurance Association (TLAA) has issued a warning to the public against purchasing life or health insurance policies from unlicensed foreign entities operating online.
The association said buyers have no legal protection under Thai law, while sellers could face serious criminal penalties.
According to TLAA president Nusara Banyatpiyaphod, consumers are urged to exercise extreme caution when purchasing insurance via online platforms or digital channels that promote policies from foreign entities not authorised to operate in Thailand.
She said such unregulated offers — often advertised with low premiums — could expose policyholders to serious risks, including loss of legal rights, financial insecurity, and difficulties in claiming compensation.
“Unlicensed insurers are not supervised by the Office of the Insurance Commission [OIC],” said Ms Nusara. “This means policyholders cannot file complaints, seek mediation, or receive support from Thailand’s Life Insurance Fund if disputes arise or the company becomes insolvent.”
In contrast, licensed insurers in Thailand are strictly regulated by the OIC and must comply with local laws, including maintaining adequate financial stability through the required capital adequacy ratio to ensure long-term protection for policyholders.
The TLAA also highlighted additional risks when buying insurance directly from foreign companies, such as foreign exchange risk. Most foreign policies are denominated in other currencies, leaving buyers exposed to exchange rate fluctuations.
Filing claims across borders can also be a lengthy and costly process, often requiring English-language documentation, cross-border verification, and even foreign legal representation — costs that could easily exceed the policy’s value.
Under Thailand’s Life Insurance Act of 1992, anyone soliciting or selling insurance on behalf of an unauthorised foreign insurer commits a criminal offence punishable by a prison term of up to six months, a fine of up to 50,000 baht, or both.
The TLAA advises consumers to verify that insurers, agents and brokers are licensed via the OIC’s website or its OIC Smart Check mobile app, as well as avoiding purchasing insurance from unlicensed foreign companies through online platforms that lack verified sources or advertise suspiciously low premiums.
Choose only insurers authorised to operate in Thailand to ensure full legal protection, reliable service and guaranteed benefits, noted the association.
“Buying life insurance is about transferring risk to secure your future and that of your loved ones. Choosing an insurer licensed and regulated by the OIC is the wisest decision to ensure your protection truly safeguards you when it matters most,” said Ms Nusara.
“Legitimate life insurance is real financial security — don’t let attractive online offers turn into costly regrets.”
She also urged the public to report any suspicious sales of unauthorised insurance policies to the OIC or the TLAA to maintain a transparent, safe and trustworthy insurance environment in Thailand.