Thailand Overview Woraya Onlaiad

Deputy MMB Leader, Bangkok

Sep 2020

benefits that truly benefit Table of Contents

About Thailand Healthcare Common Benefit Landscape Coverage

Key Trending Covid19 Latest Highlights Benefit Update on Renewal Request Process

Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. Woraya Onlaiad Deputy MMB Leader Mercer Marsh Benefits™

Woraya is overall responsible and led for ensuring delivery of benefits broking and consulting services for employee benefits in Thailand to ensure that MMB offer an appropriate level of care to the clients and the services run smoothly, accountability and efficiently.

Before joining MMB Thailand, Woraya worked for JLT Thailand for 1.5 years as EH&B Director and with Aon Woraya Onlaiad Thailand for 5 years as a Senior Global Business Manager who was responsible for delivering a professional Deputy MMB Leader services and working closely with the global client to provide the best solutions and strategic counsel in negotiating, benchmarking.

Education A Master degree in Business Administration and a Bachelor degree in Faculty of Liberal Arts majoring in Southeast Asian Studies with first class of honor from Thammasat University.

benefits that truly benefit About Thailand

benefits that truly benefit About Thailand Demographics

66.56 M 72 : 79 37.44 M Total population of Thailand in 2019 Male : Female Total labor force (March 2020) Life expectancy at birth (2020 est.) $543.7 bn 1.0% $10 Gross Domestic Product in 2019 Unemployment rate Thailand’s current minimum wage 313 baht per day. Thailand's workforce is among the most cost-efficient in the world.

1 USD = 33.1 THB Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. About Thailand Targeted Industries

Legal copy goes here. Healthcare Landscape

benefits that truly benefit Healthcare Landscape Healthcare Infrastructure

Physician Government Hospitals Private Hospitals Healthcare Persons Workforce The public healthcare system is There are several private hospitals Registered Nurse funded by the Department of Medical within Bangkok, most of which offer Density in Persons Services and the Ministry of Public healthcare that matches or Thailand Health. The standard of healthcare in exceeds the level of care found in Medical Technologist Thailand’s major cities. hospitals in many western Persons Thai nationals with a Universal countries. Coverage Health Card or foreigners Hospitals in Thailand are reviewed Dentist paying social security as part of their and accredited by independent Persons taxes receive free treatment at the accreditation organizations. government hospitals. Pharmacist Most of the healthcare staff will often Persons be primarily Thai-speaking, with some doctors possibly being able to speak some English.

Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. Healthcare Landscape Top 5 causes of death in Thailand

Cancer

Heart Disease

Diabetes

Hypertension

Kidney Disease

Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. Healthcare Landscape Healthcare Systems in Thailand - Social Securities Sickness or Injuries benefits •Treated in hospitals in which one can use one’s social security card or in a network •Pay in advance for treatment at other hospitals both public and private •R&B benefits reimbursed at not more than700 baht per day •Dental care reimbursed at not more than 900 baht per year Maternity Benefits •A lump sum for child delivery of 13,000 baht (not more than twice) •Compensation for Maternity leave at a rate of 50% of average wage for 90 days Invalidity Benefits (Disability Benefit) •Not severe - Income replacement 30% of daily wage for a certain period but not more than 180 months •Severe - Income replacement 50% of daily wage Death Benefits •Funeral grant 40,000 baht •Contributed to SSO 36-120 months, receive compensation at the rate of 50% of avg. wage for 4 months •Contributed to SSO 120 months onwards, receive compensation at the rate of 50% of avg. wage for 12 months Child Allowance •A lump sum of 400 baht per legitimate child aged mot more than 6 full years, but not more than 3 children Old – Age Benefits •Retirement lump sum - contributions for not less than 12 months are entitled to benefits equal to their contributions •Retirement pension is paid monthly for life - equal to 20% of the average monthly wage of the last 60 months. the salary base used to calculate a pension must range between 1,650 and 15,000 baht per month. Unemployment benefits •Termination - 50 percent of wages but for not more than 180 days each period •Resignation or end of contract - 30 percent of wages but for not more than 90 days each period. •Unemployment due to force majeure - 50 percent of the wage but not for more than 180 days each period. Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. Healthcare Landscape Healthcare Systems in Thailand - Social Securities

Expat legally working in Thailand must register to the social security office. Registered expat will have the same benefits as insured Thai nationals.

The coverage does not include the following:

Regional, local and foreign government employees

Thai nationals working in a foreign country

Private school teacher or headmaster

Students or undergraduate trainees employed by schools, universities or hospitals

Judges

Civil servants

Employee of state enterprises

Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. Healthcare Landscape Healthcare Systems in Thailand - Workmen’s Compensation

1. The compensation amount or indemnity in case of injuries, disability or death

2. The medical expenses, actual and necessary medical expenses must be paid up to Baht 45,000 to 300,000 depending on the severity of the cases as prescribed in the Ministerial Regulations

3. Industrial rehabilitation expenses, Employment rehabilitation expenses must be paid as necessary, up to Baht 20,000.

4. Funeral expenses will be paid at a minimum amount equal to 100 times the minimum daily wage rate.

Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. Healthcare Landscape Healthcare Systems in Thailand - Retirement

1st Pillar

Old Civil Service Scheme and Social Security Fund make up the 1st pillar or state pension, which is intended to secure the basic needs.

2nd Pillar

The 2nd pillar consists of the Government Pension Fund. The Government Pension Fund (GPF) is a defined contribution pension system for civil servants.

3rd Pillar

The 3rd pillar is a privately-financed personal provision and is voluntary. Provident Fund is an occupational pension. Unlike normal savings, it is incentivized with tax advantages and can be used as a means of closing pension gaps.

In addition, voluntary retirement saving can be made through personal saving plans, including the Retirement Mutual Funds, which is opened for all including the employees not covered by provident funds.

In 2015, the government introduces the National Saving Fund (NSF), a new voluntary retirement savings program. It is intended to cover Thai citizens who are not covered by any pension schemes especially the informal workers.

benefits that truly benefit Common Benefits Coverage Currency : THB Prevalence

Medical Life Disability Accident Travel 98.8% 95.3% 89.9% 86.9% 83.3% Provided by our Provided by our Provided by our Provided by our Provided by our clients clients clients clients clients Prevalence Inpatient Outpatient Dental Maternity Vision Check-up

Employee 98.8% 97.6% 79.8% 30.4% 22.6% 85.1%

Dependent 49.4% 51.2% 20.2% 22.6% 2.4% 4.2%

Prevalence Inpatient Outpatient Dental Maternity Vision Check-up Benefits Amount Itemized 1,550 / visit ; 30 3,000 / year Normal Delivery 3,000 / year 2,900 / year R&B 2,500 / day visits / year 25,000 Hos. 35,000 or Caesarean Sur. 40,000 30,000 per year 50,000 Miscarriage 12,500

•Minimum 2 – 30 employees Package •Benefits One (USD 3,500 for minimum fee offset with commission) •Ready Made Package

Tailor Made •Minimum 30 employees •Based on client’s benefits plan & budget

Third Party •Vendor Management Administration (TPA) •Admin/ Claim handler

Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. Common Benefits Coverage Line of Insurance Products

Life Hospitalization (IPD)

Supplementary Major Medical Accidental Death & Dismemberment (AD&D) Outpatient (OPD) Total Permanent Disability (TPD) Dental

Emergency Medical Expenses X-Ray/Lab Test (ME) Maternity Critical illness (CI) Pre/Post Hospitalization

benefits that truly benefit Key Highlights on Renewal Process Key Points

• Insurer will release renewal proposal 1.5-2 months prior to policy expiry 1 – We can push to 2.5 to 4 months for certain cases and/or certain insurer but likely premium is not competitive. – Not advisable to push for earlier than that. Most insurer can’t and those who can usually will state it as indicative. – We have some incidents where the real proposal and indicative differ by quite a margin.

• Insurer rarely provide a policy period less than 1 year, especially for new policy and will incur short term premium with higher risk 2 calculation – We can harmonize policies into 1 specific date – Decreasing employee’s benefits in Thailand must have employee’s consent – To achieve policy date harmonization, recommendation is to implement policy period longer than 1 year to avoid higher risk calculation

• For Medical, pooling partners may not be competitive due to various reason such as 3 – Higher operating expense – Higher profit preference compared to others – Additional fee within their pricing structure – Only a few pooling partner that really has a say in local partner premium calculation

• Insurer requires at least 5 working days to prepare a quote / proposal for each alternative benefit design. 4 – January Renewal is the most hectic period of the year as most Policy Period starts on 1st Jan – Due to heavy load, expect delay from insurer in providing quote, quote revision or additional alternative design – To ensure cashless facility is up and running by 1st Jan, Insurer require confirmation by around 15 to 20 December latest. – Wet Signature for application, beneficiary form, original company documents still required based on Office of Insurance Commission’s regulations

Life License Partners Non-Life License Partners

benefits that truly benefit Trending Benefit Request New Coverage Employee Benefit is evolving, we encounter various benefit request that is out of ordinary in the past few years from global clients. Below are some update and feedback on those request

Benefit Prevalence in Thailand Coverage Availability Foreseeable Future

Domestic Partner Yes Insurer does not require a prove of marriage. Continue as current Insurer honor HR’s rules & eligibility for spouse who enter the plan

Same Sex No Limited and only some insurers allow to enter the Insurer is more to open on same sex plan coverage as the government endorsed permitting along with legal amendments

Parents Coverage No Limited and only some insurers allow to enter the Difficult to push as insurers are not keen plan due to higher risk from age and health insuring senior members. Normally offer conditions individual plan

Transgender No Will need to declare as Male or Female. Any Continue as current illness related / disorder due to such gender issue or transgender related illness will not be covered HIV / AIDS No Some insurers are open to cover. Majority are More insurers are willing to extend cover still considering as exclusion

Gender re-assignment No Not cover Continue as current surgery

Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. Trending Benefit Request New Coverage Employee Benefit is evolving, we encounter various benefit request that is out of ordinary in the past few years from global clients. Below are some update and feedback on those request Benefit Prevalence in Thailand Coverage Availability Foreseeable Future Fertility Treatment (IVF) No Not cover Continue as current

Traditional Chinese No Limited and only international healthcare plan or Insurer is more to open. However, the Medicine some local insurers extend to cover. treatment shall be ordered by the physician registered with The Medical Council of Thailand Mental Illness No Not cover for local plan. Only international Continue as current but company try to healthcare plan with some limit seek another option such as EAP to help employee on stress management Voluntary Top Up No Usually under individual plan on their own as a Continue as current complement not automatic top up from current coverage. If under group, sizable volume, benefits limit and pooling with main group policy is required Flexible Benefits No but become a trend Some insurers are open to cover. Majority are still More insurers are willing to extend considering as exclusion cover Claim Online No but become a trend Still Limited and only international healthcare plan Office of Insurance Commission (OIC) or some local insurers have the portal to submit is more open and we expect to see this claim online with amount limit feature become prevalent in the near future.

benefits that truly benefit Covid-19 Crisis Thailand updates as of 14 Sep 2020 The Protocols Permission to enter the Kingdom of Thailand for non-Thai nationals

Must register through the Royal Thai Embassy or the Royal Thai Consulate in the country of origin to apply for a certificate of entry into the Kingdom by agreeing to be quarantined in a State facility for 14 days and must present the following documents:

1. A Fit to Fly Health Certificate which has been certified or issued no more than 72 hours before traveling; 2. Proof of health insurance with a minimum medical coverage of US $100,000.

Upon entry into the Kingdom, they must also undergo public health screening measures, and may be required to get a rapid test if deemed necessary, prior to being quarantined in an alternative state quarantine facility for 14 days, for which the traveler will be entirely https://ddc.moph.go.th/viralpneumonia/index.php responsible for the expense.

Copyright @ 2020 MMB (Thailand).Legal copy goesAll rights here. reserved. What kind of arrangements have been taken in response to the pandemic in Thailand?

“Refresh and review business continuity and process plan, and encourage virtual working platform.”

“Establish Crisis Management team for COVID-19.”

“Identify critical positions and arrange remote working rotation exercise in the case of crisis, where employees could not enter office to perform work.”

“Provide support in terms of employees’ financial wellness and well-being.”

“Provide COVID-19 insurance for employees & dependents.”

“Separate working team to enter the workplace”

Legal copy goes here. Do my employees well protected by current Benefit Scheme? At this moment, all medical policies cover pandemic but Not all incurred cost paid by government or your insurance Does your existing policy cover pandemic? Yes, as the OIC announced that insurers are required to cover the medical treatment of COVID-19.

“I have group health My company’s coverage is a bit low. Any supplementary products for COVID-19? insurance policy in place” Yes, there are COVID-19 products available in the market for both individual and group policy. Those policies cover for medical treatment from COVID-19 and can be used together with your existing policy. Private hospitals now also treating COVID19 patient

Yes, there are private hospitals collaborated with the government to accept COVID-19 patients. “I know for sure that my existing group health insurance covers pandemic” However, voluntarily choosing the hospital to get the treatment, the cost shall be absorbed by you. Even if in the end government pay the cost, it is most likely that private hospitals will charge the cost to you for some treatment items.

“But government will pay all the cost, Protective Equipment & Covid19 Test right?” - Some hospitals charged Covid19 Test (Rapid & PCR) before they treat the patient for any illness - Insurer will not cover for Protective Equipment & Covid19 Test even you have a symptom

Self-Isolation at Home? Telehealth guards you 24/7 “We implement WFH; - This pandemic could be ongoing for 12+ months.** With situation develop rapidly in Asia, we can’t our employees are safe. be sure how long we can continue WFH. They are young, it is less likely they will be - Either stay at home for WFH or self-isolation, telehealth is useful. hospitalized” - Insurer also will not cover for Self-isolation cost and any state quarantine cost - Telemedicine becomes one of insurer’s service feature for the insured to get the treatment

Copyright @ 2020 MMB (Thailand).Legal copy goes All rightshere. reserved. increase in utilization of of workers were willing to try at telemedicine services of companies are offering least one digital health tool1 additional health and well- being resources during these uncertain times2

1Health on Demand, U.S. Results, 2020, Mercer & Oliver Wyman 2Mercer US COVID-19 Live Poll – Released 3/31/20 (pulled 4/14)

Telemedicine / EAP Well-being Digital coaching Virtual care

Remote Meditation / Sleep support Remote triage monitoring Resiliency

Legal copy goes here. Mercer Marsh Benefits (MMB) – Our services offerings in Thailand

C O S T V E N D O R S T R A T E G Y & MANAGEMENT ADMINISTRATION & SELECTION PLANNING & D E S I G N COMMUNICATION MANAGEMENT We will: Based on your benefit program We will help you: We will work with you to: and our analytics, we will: • Understand your needs and • Assistance in the development of • help you set priorities • Provide recommendations appropriate underwriting data around the adequacy of your and specifications for renewal • Share market trends program and cost drivers negotiations •

• Help you articulate your • Use creative, data-driven • Preparation of marketing program objectives so that benchmarking and modeling submissions to insurers • decisions have a firm basis tools. • Evaluating and reporting on the • Ensure smooth transition of • Work with you to revisit your financial stability of insurers • broking and vendor plan design and financing arrangements approaches to ensure • Ensure that all renewals meet alignment with your objectives the timeline required • • Disclose Broker remuneration • Advice and assistance in the placement of the insurance program

Mercer Marsh Benefits provides clients with a single source for managing the costs, people risks, and complexities of employee benefits. The network is a combination of Mercer and Marsh local offices around the world, plus country correspondents who have been selected based on specific criteria. Our benefits experts, located in 135 countries and servicing clients in more than 150 countries, are deeply knowledgeable about their local markets. Through our locally established businesses, we have a unique common platform which allows us to serve clients with global consistency and locally unique solutions.

IMPORTANT NOTICE: This document does not constitute or form part of any offer or solicitation or invitation to sell by either Marsh or Mercer to provide any regulated services or products in any country in which either Marsh or Mercer has not been authorized or licensed to provide such regulated services or products. You accept this document on the understanding that it does not form the basis of any contract.

The availability, nature and provider of any services or products, as described herein, and applicable terms and conditions may therefore vary in certain countries as a result of applicable legal and regulatory restrictions and requirements.

Please consult your Marsh or Mercer consultants regarding any restrictions that may be applicable to the ability of Marsh or Mercer to provide regulated services or products to you in your country.

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