Thailand’s Insurance claims from March 2025 earthquake may hit B50 billion
Industry association says overall outlook good despite economic challenges
Total insurance claims from the powerful earthquake that struck Myanmar and Thailand in March could surge to 50 billion baht, up from the 30 billion already filed across 150,000 claims, according to the Thai General Insurance Association (TGIA).
The claims process is expected to continue through September.
Somporn Suebthawilkul, the TGIA president, said the quake had a deep impact on both the public and the insurance business, raising awareness of the risks posed by natural disasters.
As a result, he said demand for earthquake-inclusive coverage and personal property insurance is expected to spike.
Mr Somporn said the increased risk may lead to higher premiums for catastrophe-related policies later this year.
Coverage gaps
According to the TGIA, among the most serious losses from the quake was the collapse of the 30-storey State Audit Office building that was under construction in Chatuchak district of Bangkok.
The claims process is still under review, with forensic engineers assessing whether the collapse resulted from design flaws or substandard construction.
If these views are confirmed, the insurer may deny the claim, unless it can be proven the building met all standards and the collapse was caused solely by the earthquake.
The quake also revealed gaps in worker protection. Many construction workers who died or were injured in the quake lacked accident insurance coverage, as their employers had not purchased voluntary policies. These workers’ families must seek compensation directly from their employers.
Expanded health options
The TGIA is also working to expand health insurance options by enabling policyholders to choose between public and private hospitals for their treatment.
The new policy structure is designed to provide coverage at both types of facilities, based on the policyholder’s preference.
The flexible health insurance plan is expected to launch in the third quarter of 2025.
However, Mr Somporn said treatment at private hospitals costs 6.1 times more on average than at public facilities, which will be reflected in higher premiums for private hospital coverage.
“The goal is not to alter the existing co-payment structure, but to give consumers more choice, enabling them to manage their healthcare expenses more effectively,” he said.
Motor compensation cap
Following the October 2024 school bus fire that exposed the limitations in current motor insurance coverage, the TGIA plans to raise the compensation limit for road accident victims from 10 million baht to 20 million under both compulsory and voluntary motor insurance.
Mr Somporn said the current compensation cap is inadequate to fully support victims and confirmed that brokers will not be permitted to cancel existing policies as a result of the upcoming changes.
Despite the higher coverage limit, policyholders will not see an increase in premiums, he said, as insurers are expected to absorb the additional risk through reinsurance arrangements.
The new compensation cap is anticipated to take effect soon, pending approval from the Office of the Insurance Commission.
Industry outlook
The TGIA forecasts Thailand’s general insurance industry will grow by between 1.5% and 2.5% this year, in line with GDP.
New premiums are expected to reach 270 billion baht, driven by rising demand for disaster insurance and continued growth in motor insurance.
In the first quarter of 2025, the sector expanded by 3.8% year-on-year, reaching 75.3 billion baht, though growth is expected to moderate amid economic uncertainty.
According to Mr Somporn, insurers are expected to adopt artificial intelligence (AI) technologies to improve risk assessment and offer more personalised insurance solutions.
He said smaller, low-premium policies are often neglected by traditional brokers, and AI can help improve access to insurance by enabling the development of cost-effective, personalised coverage delivered through digital platforms.
Source: https://www.bangkokpost.com/business/general/3062592/insurance-claims-from-quake-may-hit-b50-billion
