Health insurance for expats - what are the advantages and disadvantages of onshore and offshore insurers and advisers. Written with specific reference to Thailand but applicable in all countries.

1. Health Insurance for Expats in
Thailand
Should you take out a ‘Local’ - Thailand based plan, or an ‘International’, or
‘Offshore’ plan?
Here are the facts - you make your own decision

2. A Common Question
• A common question for expats in Thailand is
whether to take out private health insurance with a
Thailand based company, or an international
/‘offshore’ company
• Thai based expats are bombarded with a constant
stream of promotional activity from offshore
insurance companies and brokers encouraging
them to choose the international option, which is
promoted as the best choice
• Is this true? What are the facts?

3. First, there are a number of things to understand about the
insurance industry

4. Regulators and Licensing
• Every country has regulations - and a regulator - responsible for the
insurance sector
• In Thailand this structure is known as the Office of the Insurance
Commissioner (OIC)
• The regulator is there to make sure the insurance industry is being
operated within certain controls and guidelines, because insurance is
such an important part of the overall economy
• In Thailand as with most countries, the Regulator concentrates on
three areas of control:
The insurance companies
The products
Dealings with customers - esp. sales and customer service

5. • Ensures insurance companies are adequately
capitalised and remain financially sound at all
times
• Thai insurance companies provide a
comprehensive monthly report and declare all
movements in assets and liabilities to ensure
solvency
• The OIC requires immediate action if any
aspect of the company’s operations is outside
the guidelines - and can suspend a company if
things are not corrected quickly
Thailand’s Insurance Regulator - Insurance Companies

6. • All insurance products must be approved
• Approval includes terms, conditions and definitions
• It also includes pricing to the consumer and limiting
the commission that can be paid
• Companies must show they are able to pay claims
(in worst cases) and have the systems and
processes to manage their business
Thailand’s Insurance Regulator - Products

7. • The OIC sets standards for sales people -
qualification/training, conduct, background, levels
of commission, etc
• The OIC looks after the interests of consumers,
handles consumer complaints and has authority
to make decisions companies must follow
• Consumer complaints are normally handled and
resolved quickly. Most are either about
misrepresentation at time of sale or customers
unhappy with a company’s decision re claims
Thailand’s Insurance Regulator - Sales/Advice

8. What are ‘Offshore’ Insurers?
• ‘Offshore’ insurance companies are registered in a small
country that is normally tax-friendly As long as the
company doesn’t do business in that country it can do
whatever it likes in the rest of the world with no
interference from the regulators
• Offshore insurance companies are registered in places
like Gibraltar, the Seychelles, Bermuda, the Isle of Man,
the Channel Islands, Liechtenstein, Belize, and Monaco
• Regulations in these sort of places are very light, making
it largely up to the company to regulate itself. This
doesn’t always turn out well

9. Two Separate Issues
When faced with the ‘local v offshore’ question, for Thai based expats
there are normally two quite separate issues to consider
The advantages and
disadvantages of
dealing with a
offshore insurance
company v a Thai
registered company
The advantages and
disadvantages of
dealing with a broker or
sales person based
outside Thailand v
dealing with one in
Thailand

10. The Company Question: Advantages of
Offshore Insurers
The following statements are often made as reasons expatriates should favour Offshore health insurers
Offshore/international
health insurers are better
at paying claims and offer
superior customer service
compared with Thai
registered health insurers

11. The Company Question: Advantages of
Offshore Insurers
The following statements are often made as reasons expatriates should favour Offshore health insurers
There is no evidence to
support statements like this.
Offshore insurers start with
the drawback to overcome
that they are not easily
accessible by clients other
than by email/phone

12. The Company Question: Advantages of
Offshore Insurers
The following statements are often made as reasons expatriates should favour Offshore health insurers
Offshore/International health insurers offer
cover internationally, locally registered Thai
insurers are only good for the local market

13. The Company Question: Advantages of
Offshore Insurers
The following statements are often made as reasons expatriates should favour Offshore health insurers
This is simply not true - the geographic
coverage, range of benefits and restrictions
compared to premiums are comparable

14. The Company Question: Advantages of
Offshore Insurers
The following statements are often made as reasons expatriates should favour Offshore health insurers
Offshore/international health
insurers have superior plans
with higher claim limits,
fewer restrictions, a better
range of benefit options, etc

15. The Company Question: Advantages of
Offshore Insurers
The following statements are often made as reasons expatriates should favour Offshore health insurers
Offshore companies don’t typically
deal with the lower market
segments however the benefits
offered by Thai registered insurers
for the middle/upper market are
comparable - this claim is simply
not true

16. Offshore/international
health insurers offer
USD, EUR or GPB
currency options
which is better for
expats

17. Some would agree,
some would not. If an
expat is paid in Thai
baht, there are
advantages in this being
the currency of health
insurance

18. Offshore/internatio
nal policies are
more easily
portable if you
move countries

19. This is true and
represents perhaps the
single ‘real’ advantage
of offshore cover to the
expat - but only a small
% who know they will
be moved to another
country regularly

20. Offshore/international health
insurers are more progressive
and up with the latest industry
developments whereas Thai
registered companies are
somewhat backward

21. There is no evidence for this and
could be argued in the opposite way
as easily

22. The Bottom Line - Local v Offshore
Companies
Good if you
plan on moving
countries
regularly
No need to worry about the
regulatory process in Belize or the
Seychelles | OIC provides
reassurance in terms of governing
the products and the company
If there is a problem or you have a
grievance an advocate
empowered to force a settlement
is immediately available
Your dealings with the company do
not always have to be via phone,
email, etc
No other
compelling
advantages
Offshore Local / Thai

23. The Broker/Adviser Question: The
Advantages of an Offshore Adviser
Not subject to any scrutiny or
requirements relating to
background, qualifications or
conduct when dealing with a Thai
based expat
No legal accountability for the
quality of the advice provided to
a Thai resident
No ability to obtain restitution if
you are not treated correctly -
even if you can find the person
By law not allowed to sell Thai
registered products to you so by
selling ‘what they have’ rather
than what is best for your needs
seldom are your interests placed
ahead of theirs

24. The Bottom Line - Local v Offshore
Adviser/Broker
Offshore Local / Thai
Can not offer you Thai registered
products even if they are in your
interests
Not subject to locally relevant
regulatory requirements
Able to say what they want
whether correct or not with
impunity
If things go pear-shaped, you are
totally on your own to try and
resolve issues
Subject to entry requirements
and ongoing conduct in order to
retain their license
Subject to the regulator, civil and
criminal prosecution for
inappropriate behaviour
Likely to be more easily
accessible in person if needed

25. The Decision is Yours
Good luck!

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