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|23 December 2025
OIC Reforms Unlock THB 200 Billion for Thai Stocks: A Critical Liquidity Pivot
The OIC has announced a reduction in risk charges for equity investments, aiming to channel over THB 200 billion from insurers into the Stock Exchange of Thailand. This move represents a direct policy intervention to address ongoing market liquidity challenges.
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OIC Reforms Unlock THB 200 Billion for Thai Stocks: A Critical Liquidity Pivot
Date: December 23, 2025 Topic: Regulatory Reform & Market Liquidity
The Office of the Insurance Commission (OIC) has signaled a major structural shift by announcing cuts to risk charges for insurance company equity investments. This strategic reform is estimated to unlock over THB 200 billion in potential fund inflows into the Stock Exchange of Thailand (SET), serving as a direct mechanism to address liquidity challenges as 2025 draws to a close.
This development represents more than just a regulatory tweak; it is a policy-driven effort to channel institutional capital back into the equity market. For business owners and investors, understanding the mechanics of this shift is crucial to anticipating the next wave of market momentum.
TL;DR: The Executive Summary
- The News: OIC announces a reduction in risk charges for insurers holding equities.
- The Impact: Estimated to free up THB 200 billion for potential investment in Thai stocks.
- The Goal: To boost liquidity and stabilize the SET amidst sluggish performance.
- The Caveat: Specific implementation dates await official gazette publication.
The Mechanism: How Cutting Risk Charges Unlocks Capital
To understand the magnitude of the THB 200 billion figure, one must look at the Risk-Based Capital (RBC) framework. Historically, the OIC has imposed high risk charges on equity investments to protect policyholders. This meant that for every Baht an insurer invested in stocks, they had to set aside a significant amount of expensive reserve capital to cover potential volatility.
By lowering these risk charges, the OIC is effectively "lowering the price" of holding stocks on an insurer's balance sheet. With lower capital requirements for the same level of risk, insurers gain "free capital" that can be redeployed into the market without compromising their solvency ratios.
Insight: This is a supply-side solution to a demand-side problem. By making equities "cheaper" to hold from a regulatory perspective, Thai stocks become immediately more attractive relative to bonds or other assets in an insurer's portfolio.
Why It Matters: Structural Liquidity vs. Hot Money
The THB 200 billion figure, as reported by Kaohoon International on December 23, 2025, is substantial enough to move the needle for the SET Index. Unlike foreign fund flows (
