Thai insurers rethink disaster policies after earthquake

Thailand’s insurance industry is preparing to discontinue free earthquake coverage and introduce standalone policies following the recent powerful earthquake, according to the Thai General Insurance Association (TGIA). As natural disaster risks grow, insurers may raise disaster premiums and increase deductible rates. Previously, earthquake coverage was often bundled with fire insurance to boost sales. TGIA President Somporn Suebthawilkul said insurers are reassessing strategies, with some considering a rise in deductibles from 20% to 30% for high-rise buildings. The collapse of the Office of the Auditor General’s building, insured for THB2.24bn (USD65.68m) by four companies, highlights the financial risks. Insurers rely on stress tests and reinsurance agreements to manage claims.