Thailand Eyes Private Disaster Insurance to Speed Payouts
Thailand is exploring private disaster insurance partnerships to speed up payouts to citizens affected by natural disasters, following Japan's model. The scheme aims to supplement insufficient government compensation of 9,000 baht per incid
On July 15, Deputy Prime Minister Prakorn Nilpraphan outlined the government's new disaster insurance concept at Government House. As natural disasters intensify and occur more frequently, the government has been studying relief measures beyond direct state subsidies. The Cabinet tasked the Interior Ministry with exploring ways to increase compensation to citizens by partnering with the private sector on disaster insurance.
The Interior Ministry, Finance Ministry, Insurance Commission, and Thai General Insurance Association are jointly studying the scheme, modeled after Japan's earthquake, flood, and typhoon insurance approach. When private insurers participate, they reduce budget pressure and pay claims faster than government agencies when criteria are met.
Prakorn explained that the private sector is already willing to implement this concept, and citizens benefit from speedier and larger payouts. He noted that state compensation of 9,000 baht per incident is insufficient for home repairs, making higher private coverage necessary.
Under the Japanese model, insurers pay immediately upon meeting set conditions, with premiums varying by area risk level. The system offers faster disbursement compared to current government processes, which are often slow and burdensome. "Currently, budget disbursement is complicated and sometimes delayed, causing disaster victims considerable hardship," Prakorn said. "Insurance-style payments with set caps ease financial burden while maintaining state support."
Prakorn stated that relevant agencies have completed preliminary discussions and are finalizing figures to present the framework to Cabinet as soon as possible, adopting Japan's model for Thailand.