Ensuring insurers adhere to capital adequacy requirements is an important aspect of the ongoing market supervision role of the OIC.

Thailand implemented a risk-based capital (RBC) framework in 2011 aligning the Thai insurance industry to many other Asian economies including Japan (since 1997), Indonesia (since 2000), Taiwan (since 2002), Singapore (since 2004), Malaysia (since 2009), South Korea, The Philippines and Thailand (since 2011).

[4] In 2010 the OIC in anticipation of the planned move to a risk-based capital measure of solvency in 2011, issued a five-year strategic development plan for the Thai insurance industry[5] in which the OIC recognised that with more than 90 licensed insurers in the Kingdom at that time,[6] industry consolidation was both desirable and necessary as many market participants would be inadequately capitalised when the full ramifications of the RBC approach were felt.

Other salient points in this plan included the recognition that in addition to undercapitalisation in some areas, the industry also suffered in places from being sub-scale and thus inefficient, posing a threat to the industry's international competitiveness, particularly as competition may increase following the relaxation of trade and commerce restrictions among members of ASEAN, commencing in 2015.

[7] The Plan recommended in addition to consolidation that the industry seek the more active involvement of multinational insurance groups able to provide the necessary capital as well as expertise to ensure the Thai insurance industry remains internationally benchmarked.