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Tokio Marine Safety Insurance (Thailand) Public Company Limited
Notes to the Financial Statements
Tokio Marine Safety Insurance (Thailand) Public Company Limited
For the year ended 31 December 2023
Notes to the Financial Statements
For the year ended 31 December 2023
Equity price risk sensitivity analysis
The table below summarises the impact of increase/decrease of these equity indices on the
Company’s other components of equity for the period. The analysis is based on the assumption
that the equity price had increased by 1% or decreased by 1%, respectively.
31 December 2023
Equity price Equity price
increase 1% decrease 1%
Thousand Baht Thousand Baht
Impact to other components of equity 986 (986)
31 December 2022
Equity price Equity price
increase 1% decrease 1%
Thousand Baht Thousand Baht
Impact to other components of equity 806 (806)
Other components of equity would increase or decrease as a result of gains/losses on
equity securities classified at FVOCI.
5.1.2 Credit risk
The Company is exposed to credit risk primarily with respect to premium receivables,
amounts due from reinsurers and financial instrument.
Credit risk is the risk that the customers or the counterparty cannot repay the debt to the
Company based on the terms agreed upon when maturity.
Credit risk arises from cash and cash equivalents, contractual cash flows of investment in
debt instruments carried at amortised cost and at fair value through other comprehensive
income (FVOCI).
Concentrations of credit risk derives from premiums due and uncollected and amounts
due from reinsurers which were no significant due to the policy holders of the Company
were diffuse into various industries and geographical areas of Thailand.
a) Risk management
The Company has the risk management policy that is approved by the Risk Management
Committee which consisted of:
Risk reporting
Risk Management team reports results to Risk Management Committee at least on a
quarterly basis. Risk Management Committee assesses the appropriateness of risk management
policy and adjusts the policy to be consistent with the Company’s operation and industry.
b) Security
The Company is exposed to credit risk primarily with respect to premium receivables. The
Company manages the risk by adopting appropriate credit control policies and procedures
and therefore does not expect to incur material financial losses. In addition, the Company
does not have high concentration of credit risk since it has a large customer base. The
maximum exposure to credit risk is limited to the carrying amounts of premium receivables
as stated in the Statement of Financial Position.
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รายงานประจำาปี 2566 | ANNUAL REPORT 2023 | 139
