The impact on Thailand's insurance industry of floods in parts of the country is manageable, says S&P Global Ratings (S&P).
Flooding from heavy rainfall has hit several provinces, mostly in Thailand's north, including the tourist city of Chiang Mai. The Thai Chamber of Commerce estimated damages at THB30bn ($900m; approximately 0.17% of GDP) as of 28 September 2024.
In the insurance sector, Thailand's Office of the Insurance Commission (OIC) has estimated floods in the north and northeast have caused more than THB420m ($13m) in losses for insurers to date. S&P says that it views this as manageable for the insurance sector.
S&P will continue to monitor further losses in the insurance industry as they are assessed, along with whether flood risks will spread to central and southern regions of the country. Thailand is flood-prone and has experienced large floods in the past, such as in 2011 and 2017. Over the years, insurers have taken significant steps in risk management and modelling of flood-prone hotspots.