National Disaster Insurance to cover 30m households by 2026

Matichon•Economy•3d ago

Reader Briefing

The Ministry of Finance is developing a National Disaster Insurance project to replace post-disaster remedies for 30 million households starting in 2026.

•The project will automatically cover approximately 30 million households across Thailand without requiring registration.
•The government will pay an annual premium of approximately 15 billion baht for coverage up to 75 billion baht.
•Implementation is expected to begin within the year 2026.
•Claims will be processed using technology such as satellite imagery to accelerate payouts.

Overview

•The Cabinet has approved the principle of the National Disaster Insurance project to replace traditional post-disaster remedy payments.
•The Ministry of Finance and the Office of Insurance Commission are currently discussing details to drive the system forward.
•The government estimates there are 30 million households that will receive automatic coverage under this policy.
•The shift to insurance aims to move risk from the government to an insurance system to make the use of the central budget more efficient.
•The Department of Disaster Prevention and Mitigation previously faced an average annual remedy payment burden of approximately 30 billion baht.
•The Thai General Insurance Association will act as the insurer and manage risk by transferring it to international reinsurance markets.
•Residents may receive faster compensation and amounts reflecting actual damage, with total payouts capped at 100,000 baht per household.
•Lawaron Saensanit expects the project to be able to start within the year 2026.

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Source: Matichon (Original)

Key Quotes

Lawaron Saensanit

"The National Disaster Insurance project is seen as a good thing; it takes the risk that the government has borne itself every year, which varies in level."

โครงการประกันภัยพิบัติแห่งชาติมองว่าเป็นเรื่องดี คือเอาความเสี่ยงที่รัฐบาลรับไว้เองทุกปี เสี่ยงมากเสี่ยงน้อยแต่ละปีก็ไม่เท่ากัน

Key Entities

Person

Lawaron Saensanit(ลวรณ แสนสนิท)

Permanent Secretary of the Ministry of Finance.

Organization

Ministry of Finance(กระทรวงการคลัง)ℹ️

The ministry responsible for driving the National Disaster Insurance system.

Cabinet(คณะรัฐมนตรี)

The body that approved the principle of the National Disaster Insurance project.

Office of Insurance Commission(สํานักงานคณะกรรมการกํากับและส่งเสริมการประกอบธุรกิจประกันภัย)ℹ️

The agency collaborating with the Ministry of Finance to implement the insurance system.

Department of Disaster Prevention and Mitigation(กรมป้องกันและบรรเทาสาธารณภัย)

The agency that previously bore the burden of paying annual disaster remedies.

Thai General Insurance Association(สมาคมประกันวินาศภัยไทย)

The entity that will act as the insurer and distribute risk to international markets.

Policy

National Disaster Insurance Project(โครงการประกันภัยพิบัติแห่งชาติ)

A government initiative to provide automatic disaster insurance for all households in Thailand.