Kathmandu. Thailand’s property insurance market is projected to grow by an average of 5.2 percent annually over the period 2026-2030 as the risk of catastrophe increases.
According to GlobalData, the recent severe flooding in southern Thailand has caused nearly $14 billion in damage. An earthquake in Myanmar earlier this year has exposed flaws in Thailand’s insurance model that covers catastrophic risks.
According to GlobalData, increasing catastrophe risk is driving up insurance and reinsurance costs and driving up loss premiums. This is putting pressure on insurance companies and urging them to strengthen disaster protection.
Despite these pressures, Thailand’s property insurance market is expected to remain strong. The loss ratio is expected to be low.
The new insurance development plan of the Office of the Insurance Commission (OIC) of Thailand focuses on strengthening risk management, underwriting standards for natural disasters, promoting digital claims processing, and closing the safety gap.
Due to the impact of natural disasters, real estate claims in Thailand may be higher than previously estimated. To address risk more proactively, insurance companies are offering multi-risk property coverage such as fire, hurricane, flood, earthquake, theft with more flexible terms.
Thai insurance companies are accelerating the digital transformation of underwriting and claims through AI, IoT and big data to increase speed and cost efficiency.
