Thailand’s insurance industry is bracing for a higher-than-expected volume of claims following the March earthquake that affected areas in both Thailand and Myanmar.
Bangkok Post reported that the Thai General Insurance Association (TGIA) projects total claims could rise to 50 billion baht (about US$1.5 billion), up from 30 billion baht already filed through more than 150,000 individual claims.
The claims process is expected to extend until September, with ongoing evaluations across property, motor, health, and casualty lines. TGIA President Somporn Suebthawilkul noted a growing public interest in disaster-related policies, particularly those covering personal property and earthquakes. He also pointed out that pricing for catastrophe insurance could increase later this year as underwriters reassess exposure.
One of the most scrutinized losses involves the collapse of a 30-story building under construction for the State Audit Office in Bangkok’s Chatuchak district. Forensic assessments are underway to determine whether structural failure or design issues contributed to the incident.
According to TGIA, if fault is found in design or construction, insurers may deny claims unless it can be demonstrated that the structure complied with standards and the collapse resulted solely from the earthquake.
The quake also exposed insurance gaps for construction workers, many of whom were uninsured. Employers had not secured voluntary accident insurance for those injured or killed, requiring affected families to pursue compensation directly.
In response to broader healthcare access concerns, TGIA is preparing to launch a flexible health insurance model by Q3 2025. The upcoming plans will allow policyholders to receive treatment in either public or private hospitals, depending on their choice.
Somporn said that premiums for those selecting private care will be higher, given that treatment at private hospitals costs an average of 6.1 times more than public facilities. The association does not plan to alter the co-payment structure.
Separately, TGIA is seeking regulatory approval to double the motor insurance compensation cap to 20 million baht following a 2024 school bus fire incident. The adjustment would apply to both compulsory and voluntary motor insurance.
Somporn said that premiums would remain unchanged, with insurers expected to manage the increased risk through reinsurance. Policyholders will retain current coverage, and brokers will not be permitted to cancel active policies.
For 2025, TGIA forecasts 1.5% to 2.5% industry growth, with total premiums reaching 270 billion baht. The sector expanded 3.8% year-on-year in Q1 to 75.3 billion baht. Insurers are also moving toward artificial intelligence tools to tailor small, affordable policies via digital platforms.
How should reinsurers respond to these shifts in catastrophe, motor, and health coverage trends in Thailand?
