Role for private insurers seen in civil service health coverage

The Ministry of Finance is considering purchasing health insurance from private insurers for civil servants, potentially replacing the current system of paying medical expenses through state budget, according to permanent secretary Lavaron Sangsnit. The government aims to manage public budget more efficiently, which may include the insurance sector sharing the burden and managing civil servants' medical expenses.

The Comptroller-General’s Department is preparing legislation to control medical coverage expenses for civil servants and their families, with these expenses being significantly higher than those under Social Security and universal health coverage schemes. The finance ministry is also collecting medical treatment statistics from hospitals nationwide to create a comprehensive database for designing insurance products.

Thailand's insurance industry has seen strong growth, but penetration among the population remains relatively low. Digital innovations like electronic KYC, e-policies, and e-claims could increase insurance access. Past success in managing agricultural risks through insurance suggests its effectiveness in reducing budgetary risks.

The government plans to use insurance to manage the risk associated with civil servants' medical expenses, emphasizing the need for comprehensive data. Progress has been made in collecting data from hospitals, with a priority on integrating data from medical teaching hospitals. The ultimate goal is to establish the insurance industry as a key pillar of Thailand's financial sector, providing sustainable risk protection for the public and government.