Thailand’s government has directed insurers to simplify and accelerate claims handling for policyholders affected by severe flooding in the south.
According to Bangkok Post’s report, Prime Minister Anutin Charnvirakul instructed insurers to fast-track home and motor claims in affected provinces and to accept photo-only submissions via Line and other designated digital channels as primary evidence of loss. The change allows claims to proceed where original documents may have been destroyed or are inaccessible.
After a government meeting on assistance, relief, and rehabilitation measures, Office of the Insurance Commission (OIC) secretary-general Chuchatr Pramoolpol said the regulator is preparing a formal announcement to require insurers to process claims based on photographic evidence of damaged cars and properties sent through approved platforms. The measure targets processing delays in flood-hit areas.
To standardise motor claims, the OIC has introduced a five-tier damage scale that applies to internal combustion engine vehicles, hybrids, and electric vehicles (EVs). Under the framework:
For hybrid vehicles, the OIC said policyholders will receive an additional 100,000 baht if floodwater reaches the floor. For EVs, water at floor level will be treated as a constructive total loss, triggering payment of the insured value because of the high cost of battery replacement. As of Nov. 26, around 3,000 vehicles had been reported damaged in the flooding.
On the property side, policyholders with valid cover for residential buildings will receive an initial payout of 20,000 baht, while insured shop owners will receive an initial 30,000 baht payment for flood-related damage.
The OIC also plans to allow insurers to extend premium payment deadlines by 90 days for policies that are due for renewal. In addition, health insurance renewals tied to affected policyholders will not require a new medical examination, according to the regulator.
The floods have had a substantial human impact. Figures reported by The Star, citing the health ministry, indicated that 267 people died in the southern floods between Nov. 22 and 27 across eight provinces, with more than half of the fatalities in Hatyai district.
The Thai flooding has occurred against a backdrop of persistent underinsurance of natural catastrophe risks across Asia. Industry research indicates that Asia has an insurance protection gap of 82.8% for natural disaster losses, meaning that only a minority of economic losses from climate-related catastrophes in the region are covered by insurance.
A recent report from MAPFRE Economics, presented at COP30, said both the frequency and severity of extreme weather events are increasing, raising overall economic and insured losses. The report cites long-term data indicating that insured catastrophe losses have grown by about 5% to 7% per year since 1992.
The report also highlighted the role of “secondary perils” such as floods, droughts, and wildfires. These events occur more often than major headline catastrophes and, taken together, now account for more than half of global disaster-related losses. This trend is adding operational and capital pressure on insurers and reinsurers and exposing gaps in coverage for households, small businesses, and public infrastructure.
