Endowment Insurance Drama Reflects Thai Financial Literacy Gap

Thansettakij•Economy•1d ago

Reader Briefing

Former Actuarial Association president urges Thailand to integrate insurance literacy into education following public debate over endowment insurance returns.

•Public criticism arose regarding endowment insurance sales focusing on high returns of 300-800%.
•Pichet Jiarmaneetaveesin identifies a lack of basic insurance knowledge in Thailand as a core issue.
•Pichet Jiarmaneetaveesin argues insurance should be viewed as risk management rather than an investment.
•OECD provides a financial literacy framework covering saving, investing, borrowing, taxes, and risk management.

Overview

•Public debate emerged online regarding the presentation of endowment insurance returns ranging from 300-800%.
•Pichet Jiarmaneetaveesin stated that the debate reflects a societal lack of understanding regarding the difference between insurance, saving, and investing.
•Pichet Jiarmaneetaveesin noted that insurance knowledge is not part of basic education in Thailand, leading people to rely on advertisements and social media.
•Pichet Jiarmaneetaveesin emphasized that insurance is a tool for risk management through risk pooling, not a product designed to compete with stocks or mutual funds.
•Pichet Jiarmaneetaveesin highlighted that Japan, Singapore, Norway, and Malaysia integrate financial literacy into their education systems.
•The OECD has published a financial literacy framework that includes risk management and insurance knowledge.
•Pichet Jiarmaneetaveesin suggested Thailand should move beyond the endowment insurance drama to improve overall insurance literacy.
•Pichet Jiarmaneetaveesin asserted that sufficient knowledge allows individuals to decide for themselves when to save, invest, or transfer risk via insurance.

Full article content is available on the original source.

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Source: Thansettakij (Original)

Key Quotes

Pichet Jiarmaneetaveesin

"When speaking of 'finance,' most people think of saving, investing, or creating returns, but in modern financial science, risk management through insurance is another equally important pillar."

เมื่อพูดถึง "การเงิน" คนส่วนใหญ่มักนึกถึงการออม การลงทุน หรือการสร้างผลตอบแทน แต่ในศาสตร์การเงินสมัยใหม่การบริหารความเสี่ยงโดย ประกันภัย จึงถือเป็นอีกเสาหลักหนึ่งที่สำคัญไม่แพ้กัน

Key Entities

Person

Pichet Jiarmaneetaveesin(พิเชฐ เจียรมณีทวีสิน)

Former President of the Actuarial Association and an expert referred to as Ajarn Tommy.

Organization

Actuarial Association(สมาคมนักคณิตศาสตร์ประกันภัย)

An organization whose former president is Pichet Jiarmaneetaveesin.

Thansettakij(ฐานเศรษฐกิจ)

The media outlet to which Pichet Jiarmaneetaveesin provided information.

OECDℹ️

An organization that published a financial literacy framework used by many countries.

Place

Japan(ญี่ปุ่น)ℹ️

A country that integrates financial learning with disaster management and daily risk management.

Singapore(สิงคโปร์)ℹ️

A country that integrates financial knowledge into its education system.

Norway(นอร์เวย์)ℹ️

A country that integrates financial knowledge into its education system.

Malaysia(มาเลเซีย)ℹ️

A country that integrates financial knowledge into its education system.