We aim to be the most preferred non-life insurer in Thailand

3. Reinsurance Risks
For the non-life insurance industry, there are inwards reinsurance and outwards reinsurance with insurance companies
both inside and outside the country. In regard to this fact, the Company is exposed to risk incurred by reinsurance companies’
financial status, or the underwriting of high risks. To minimize such risks, the Company has analyzed the financial status and
considered the credit rating of all reinsurance companies. In addition, the Company also purchases excess of loss cover in order
to manage its risk in the event of a tremendous calamity.
4. Difficulties in Premium Collection
Due to severe competition in the non-life insurance industry, the Company has provided a period of time to the agent
and broker to submit their premiums.
To minimize the risk of being unable to collect premiums, the Company has complied with the notices of the Office of
Insurance Commission concerning the premium collection for motor insurance, which require that customers pay their premiums
before the policy becomes effective for its coverage (Cash Before Cover). Additionally, the Company has improved a guideline for
its performance in premium collection, and required the agent and broker to submit collateral. Additionally, the Company manages
debts efficiently, which helps reduce the risk.
5. Operational Risks
These refer to risks that may arise from human error, failure of a work system or an information technology system,
or an insufficient internal control system that may result in corruption. Such risks can usually be estimated in terms of money, although
they cannot be monetarily measured in certain cases, such as damage caused to the Company’s good image and reputation.
To minimize this risk, the Company has assigned the Internal Audit Department to identify, assess, follow up and
control the risk and continuously report to the Audit Committee in order to find out the level of risk and minimize operational risks at
an acceptable level.
Apart from this, all levels of the Company’s sections regard it as a significant mission to follow up, control and assess
operational consequences so that operational risks are controllable.
6. Investment Risks
For any investment, the Company will take into account both the returns and risks. Investment risks include the following.
6.1 Price Volatility Risk
Over 2009, Thailand has witnessed volatile stock exchanges, causing the fair value of the Company’s
investments in marketable securities to fluctuate corresponding with the SET’s index.
To minimize the risks incurred by price volatility, the Company has chosen to invest in fundamentally sound
securities and diversified its investments in various categories of industries, apart from focusing on long-term investment, with a
belief that any securities with sound fundamentals and management, and capability of profitable growth will have an appropriate
fair value and not be significantly volatile. Besides, the Company closely follows up the securities issuers’ financial status and
performance to minimize the risk.
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