Newsletter
EXISTING POLICIES CAN BE SOLD FOR ONE YEAR AFTER MERGER
To encourage mergers between insurance com-panies, in June 2001 the Department of Insur-ance (DOI), Ministry of Finance (MOF) stated that when a local insurance company is absorbed into or merged with another insurer, for one year after taking over operations the acquiring com-pany may continue to sell the existing insurance products of the acquired company. However, product names must be changed to use the name of the surviving or newly established company. To encourage foreign investors to acquire local insurers, this also applies when a local insurance company is taken over by or merged with a for-eign insurance company.