THAI PRIMARY MARKET REFORMS BRING HOPE FOR LOCAL REINSURERS

Forthcoming reforms of Thailand’s primary market are set to bring considerable opportunities for the local reinsurance sector rather than for foreign players, according to one of the country’s leading industry figures. Surachai Sirivallop, chief executive of Bangkok-based Thai Re, acknowledged that a number of foreign reinsurers were keen to benefit from liberalisation within Thailand. However, he predicted that the bulk of any extra business would be retained locally because international competitors had failed to develop the range of services they were offering. He claimed that outsiders had remained “too conventional” in the way they catered for the Thai market. Mr Sirivallop’s comments came ahead of Thailand adopting a wide-ranging reform package for its primary insurance market. The move is expected to lead to a cut in the number of primary players — but with firms being financially stronger than at present.