In a recent special lecture, the Caretaker Finance Minister, Arkhom Termpittayapaisith, underscored the pivotal significance of the insurance industry in driving sustainable economic and social progress in Thailand.
Addressing an esteemed gathering of high-level insurance industry representatives at an annual conference, Minister Arkhom emphasized the pressing need for the Office of Insurance Commission (OIC) to adopt a vigilant approach in monitoring and managing the escalating risks posed by natural calamities and contagious diseases.
Commending the insurance sector’s efforts in mitigating the impact of COVID-19 on the public, Minister Arkhom proposed adapting foreign insurance models to suit the unique context of Thailand. He unveiled a comprehensive three-point development plan aimed at fostering the growth of the insurance sector. The first point involved crafting sustainable policies aligned with the United Nations’ goals to combat the far-reaching effects of global warming on economies worldwide.
For the second point, Minister Arkhom advocated embracing technology to streamline processes, reduce costs, and enhance overall efficiency, with a strong emphasis on secure data management. He underscored the transformative potential of integrating cutting-edge technology into the insurance industry.
Highlighting the importance of engendering trust in the insurance system, the third point of the development plan emphasized the need for insurers to protect consumers from a diverse array of risks, ensuring their financial security and peace of mind.
Acknowledging Thailand’s ongoing economic recovery, largely driven by the tourism industry, Minister Arkhom pointed out that the nation still contends with volatility arising from global economic factors and a gradual resurgence in the export sector. Against this backdrop, he emphasized the paramount importance of nurturing a stable and sustainable financial sector while bolstering confidence in Thailand’s economic landscape.
Minister Arkhom proudly shared that Thailand’s successful bid to host the esteemed World Bank and International Monetary Fund meetings in 2026 stood as a testament to the enhanced confidence in the country’s economic prospects.
Commenting on the spending limit under Section 28 of the Fiscal Discipline Act, Minister Arkhom candidly acknowledged that only 18 billion baht remains available, potentially curbing the new government’s capacity to implement semi-fiscal policies. Presently, the spending limit stands at 32%, a reduction from the expanded ratio of 35% implemented during the challenging period of the COVID-19 crisis.
Minister Arkhom emphasized that any future adjustments to this ceiling would be contingent upon necessity and would necessitate the approval of the Fiscal Policy Committee. At present, he sees no immediate need for expansion, recommending a return to the original 30% limit. The Finance Minister’s cautious approach seeks to ensure fiscal prudence and responsible economic management for the betterment of Thailand’s financial stability and prosperity.