Thailand approves 15.5 billion baht disaster insurance scheme

Thailand has unveiled a $467 million annual disaster insurance scheme, covering approximately 30 million households in high-risk regions, according to a government announcement on September 1. Prime Minister Anutin Charnvirakul revealed the scheme's annual budget, with private insurers responsible for claims exceeding the government's direct funding.

The plan aims to cut state spending on disaster losses, which currently amounts to at least 30 billion baht per year. Government compensation for flood-related damages will start at 10,000 baht, while storm or earthquake-related incidents will be covered by 5,000 baht. Payments will be issued within 15 days. Total compensation per household will be capped at 100,000 baht for each disaster, and a death resulting from a disaster will receive a 2 million baht payout.

The initiative is being developed by the Department of Disaster Prevention and Mitigation, the Ministry of Finance, the Office of Insurance Commission, and the Thai General Insurance Association. Recent flooding in Thailand, including recent north and south outbreaks, has underscored the need for such a safety net, as urbanization and climate change increase exposure to natural disasters, and much of the associated economic damage remains uninsured.