| Author | Chomplearn Tanatammatorn |
| Call Number | AIT RSPR no.SM-00-27 |
| Subject(s) | Reinsurance--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of
Master of Business and Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no.SM-00-27 |
| Abstract | Reinsurance is needed for all insurance firms. It is used to spread the insured risks that the
insurance firms undertake. In Thailand, outward reinsurance is very necessary owing to the
fact that local insurance firms are small. They have limited retention capacity and ability to
manage large risk. Although the government has tried very hard to encourage more local
retention, outward premium is still far greater than inward premium. As a result, Thailand
always registers a large deficit in reinsurance balance.
The analysis indicated that for some classes of businesses, local insurers would have gained
more profit if they had retained more insurance premium they underwrote, especially when
loss incurred was low. With outward reinsurance, a lot of premium and profit was transferred
to foreign reinsurers. However, the reinsurance experts pointed out that sometime it is
difficult to retain a lot of insurance premium with local companies for some reasons. Most
insurance companies in Thailand are too small to retain such high risk. Some risks are very
specific and over ability of local insurers to manage. Therefore, if local insurers really retain
more risk, they may not get as high profit as expected.
Despite this fact, it is believed that local insurers will be able to retain some more of good
risks. It is not necessary to keep all retention but only a little bit more. Then, reinsurance
balance deficit will be smaller. |
| Year | 2000 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no.SM-00-27 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S.; |
| Examination Committee(s) | Piman Limpaphayom;Buchel, Bettina; |
| Scholarship Donor(s) | The Government of Austria; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2000 |