Thailand Approves 15.5 Billion Baht Disaster Insurance Program

The government of Thailand approved a 15.5 billion baht ($467 million) annual insurance program designed to provide disaster coverage for approximately 30 million households in high-risk areas. The initiative covers floods, storms, and earthquakes, providing total annual coverage of roughly 75 billion baht. By shifting a portion of catastrophe costs to private insurers, the government intends to reduce the taxpayer burden, as the state currently spends at least 30 billion baht annually on disaster compensation.

Under the new plan, households will receive initial payouts of 10,000 baht for flood damage and 5,000 baht for storm or earthquake damage within 15 days. Total compensation is capped at 100,000 baht per household per disaster, with 2 million baht provided for each disaster-related death.

This program responds to rising disaster costs driven by urbanization and climate change, following recent severe flooding in northern and southern Thailand. The initiative was developed through coordination between the Department of Disaster Prevention and Mitigation, the Thailand Ministry of Finance, the Thai General Insurance Association, and the Washington State Office of the Insurance Commissioner.