Earthquake insurance prices set to rise after Bangkok damage

The insurance industry is preparing to mitigate the impact of natural disaster risks after most parts of Thailand, including Bangkok, were hit by a strong earthquake on Friday, pointing out that free earthquake coverage would no longer be available.

- NUNTAWUN POLKUAMDEE

As the risk of earthquakes and other natural disasters has intensified, free earthquake coverage will no longer be offered and earthquake insurance is expected to be separated from fire insurance, according to the Thai General Insurance Association (TGIA).

Besides, disaster premiums are likely to increase, along with an increase in deductibility rates to reflect the growing risk, it added.

“Thailand has never experienced such a strong earthquake as the one that rocked the country last Friday,” said TGIA president Somporn Suebthawilkul.

Previously, insurance companies often bundled disaster coverage, such as coverage for earthquakes and floods, with fire insurance policies for buildings, high-rise buildings and residential homes as a strategy to boost sales, said Mr Somporn, who is also chief executive of Dhipaya Group Holdings.