1. Recent Developments and Future Plans for the Actuarial Profession in Thailand Amornthip Chansrichawla, FSA August 1 st, 2006

2. Thai Insurance Industry Overview

3. Number of insurance companies Line of business Domestic Companies Foreign Branches Total Life23124 Non-Life64569 Health5-5 Reinsurance1-1 Total 93939393699

4. Premium Distribution in 2005 2,338 Million US$: 35% Non-Life 4,415 Million US$ : 65% Life

5. Direct Premium Growth Year Total businessLifeNon-Life Amount % change Amount % change Amount % change 20024,68819.273,04022.411,64813.87 20035,38214.803,50915.441,87313.63 20046,06912.763,98213.472,08711.42 20056,75311.284,41510.882,33812.04 2006*7,47510.694,85710.002,61812.00 *Estimate figures Figures in Millions of US$

6. Financial Position as of 2005 ItemLifeNon-lifeTotal Assets16,2693,74520,014 Liabilities13,7492,15815,907 Capital funds 2,5201,5874,107 Unit: Million US$

7. Insurance Penetration LifeNon-lifeTotal UK8.923.6812.60 Switzerland6.735.0211.75 Japan8.262.2510.51 France6.383.149.52 USA4.225.149.36 Australia4.173.858.02 World average4.553.437.99 Singapore6.021.487.50 Asia average5.581.797.37 Malaysia3.521.885.40 Thailand1.941.583.52 PR China2.211.053.26 India2.530.653.17 Vietnam1.350.682.02 Philippines0.910.591.49 Indonesia0.630.681.31 Premiums as % of GDP in 2004

8. Insurance Penetration THAILAND

9. Thailand Insurance Penetration

10. Recent Developments for the Actuarial Profession in the Non- life Business

11.  The establishment of the ‘ Insurance Premium Rating Bureau’  Actuarial certification of Claims Reserves

12. The Insurance Premium Rating Bureau  Initiated in 2003 as a department within GIA  The commissioner agreed on the principles of IPRB establishment in 2004.  IPRB commenced operations on April 4, 2005.

13. Why was IPRB established?  A mechanism to support industry readiness for the liberalized market environment.  One of the key initiatives to support premium rating deregulation plan of the regulator.

14. IPRB Mission Provide insurance statistics and actuarial analysis for the members to realize vision for a competitive, efficient and stable insurance industry.

15. How to achieve the mission? IPRB invests in:  People - build actuarial skills.  Process - find excellent working process both for internal and external related parties.  Technology - owns a dynamic & secure IT infra-structure.

16. Key Actuarial Skills Needed for the Non-life Business  Ratemaking & Individual Risk Rating  Loss Reserving  Risk Classification

17. Future Plans for the Actuarial Profession in Thailand

18. Society of Actuaries of Thailand  Founded in 1975  To provide programs for continuing education, to support research and to provide a forum for discussion of actuarial issues  Links with regional associations  No proscribed role in regulations  Certified Actuary by Ministry of Commerce  Profession is little known

19. Thai Insurance Industry Development Master Plan (2006- 2011)  Promote efficiency, stability, competitiveness of insurance companies  Risk based capital & risk based supervision  Professionalism  Good Governance  Public Company Act  Product Innovation  Self regulation  Insurance Premium Rating Bureau

20. Current Environment  Realization of critical need to develop actuaries and support the actuarial profession  Council for Development of Life and Non-life insurance Industry  Master Plan Insurance Industry Development (2006-2011)  Federation of Thai Insurance Organizations  Insurance Premium Rating Bureau

21. Proposed Development of Actuarial Profession in Thailand  SOAT restructured to represent comprehensively actuaries in all areas of practice  Work with Regulators to introduce legislative changes on qualification, roles and responsibilities of actuaries  Seek the support of the IAA in developing the society into full member

22. Our Challenge  Create the framework for the development of technically competent and professionally reliable actuaries to ensure that public interest is served and to promote a competitive and stable insurance industry.