Clifford Chance

Thailand: Easing of Foreign Shareholding Limit for Insurance Companies

23 January 2017

The Ministry of Finance recently issued its long-awaited notification on relaxation of the foreign shareholding limit for life and non-life insurance companies. This took effect on 18 January 2017. This briefing provides an outline of the changes under the notification and criteria that must be met to benefit from the notification.

Under the notification, foreigners (including a foreign entity and a 50% or more foreign-owned Thai entity) may be permitted by the Finance Minister, pursuant to a recommendation from the Thai Insurance Commission (IC), to hold more than 49% of the voting shares of a Thai insurance company and foreign directors may comprise more than half of its directors, if the insurance company can show that it will strengthen and stabilize the insurance company and the insurance industry.

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