Thailand has released a draft amended Electronic Transactions Act (ETA), which aims to overhaul the current version of the law from 2001 to correct its enforcement limitations and update the ETA to be consistent with current electronic transactions practice. The draft ETA is open for public comment until December 20, 2024. The draft ETA introduces a new supervisory scheme that (1) recognizes electronic transactions executed by both current and future technologies without having to enact regulations recognizing the technology, (2) replaces the licensing, registration, and notification scheme for electronic transaction service providers with a trust-mark scheme, and (3) introduces a new mechanism to regulate electronic transaction service providers. The major amendments under the draft ETA address: Relationship with other relevant laws. The draft ETA is designated as the primary law governing electronic transactions, whether between private parties or between private parties and the state. However, if specific laws—including those on electronic administrative procedures—prescribe methods for conducting particular electronic transactions, those laws will prevail. Definitions. The draft ETA revises some existing terms, such as “transaction,” which is now more clearly defined as “any act relating to civil or commercial activities, including administrative procedures, administrative contracts, and any other actions by government agencies or officials.” It also introduces new definitions, such as “biometric data,” “automated system,” and “electronic seal.” Electronic transaction reliability. The draft ETA now clearly provides that electronic transactions executed using a method or an electronic method stipulated by the Electronic Transactions Development Agency (ETDA) as reliable are themselves presumed to be “reliable.” In case of a challenge over the implementation of a certified method or certified service, the challenging party bears the burden of proof and related expenses. Electronic transferable instruments. The draft ETA adopts the UNCITRAL Model Law on Electronic Transferable Records (ETRs) in recognizing ETRs (e.g.,

Thailand’s Ministry of Finance (MOF) has issued a new notification easing foreign shareholding and board limits for life insurers. This long-awaited update aligns with the draft notification that was previewed in May 2024, and reflects the MOF’s intention to enhance the stability and competitiveness of life insurers. Life Insurer Qualifications Life insurers may apply for permission to exceed 49% foreign shareholding or have a majority of foreign directors if: The life insurer operates in a manner that could harm the insured or the public, and either (1) the OIC has directed the company to improve its status or adjust its capital, or (2) the company’s actions may have a significant impact on the insurance industry, causing significant compensation burdens and affecting the company’s capital adequacy ratio (CAR); The life insurer’s shareholders are unable to increase capital; and The life insurer is unable to attract Thai investors to increase the capital necessary to ensure stability and the long-term operation of the business. Foreign Shareholder Qualifications To qualify, foreign shareholders must: Either be an insurance company or have at least 10 years of relevant experience in the insurance industry; Demonstrate financial stability and possess a credit rating (or have a parent company with a credit rating) of at least “A” from a reputable credit rating agency; Present a clear and comprehensive business plan to develop and promote the company’s efficiency and competitiveness in the industry; and Be able to make an investment that increases the company’s capital by at least THB 2 billion to maintain stability with a CAR of at least 250%. For more details on the MOF’s notification regarding criteria on foreign shareholding limits for life insurance companies, or on any issue concerning insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree

Thailand’s Office of Insurance Commission (OIC) recently announced two Notifications regarding Timeframe Standards for Service Level Agreements, for both life and non-life insurance companies. Under these notifications, every insurance company is required to set out clear and specific timeframes in its service level agreement (SLA) for at least the following activities: Providing information about life and non-life insurance and offering insurance policies; Underwriting and providing after-sales services; Paying compensation under the insurance policy; and Handling complaints. The timeframes described in the SLA must not exceed those specified in the insurance policy or by the relevant laws, and the SLA (which must be published on the insurer’s website) must be continually updated to reflect any changes in the timeframes. Insurance companies are required to disclose the standard timeframes for SLAs on their website by January 1, 2025, and notify the OIC through the channels and methods specified by the OIC. For more details on the OIC’s notifications on SLA timeframe standards, or on any aspect of insurance regulations in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Witchupong Chittchang at [email protected], Ajaree Trachukul at [email protected], Thammapas Chanpanich at [email protected], or Sireethorn Wijan at [email protected].