A major flood in southern Thailand at the end of 2025 caused widespread damage to homes, vehicles, and belongings, all swept away by the waters. Economic research centers estimate the damage at over 10 billion baht. This is more than just a number; it represents the real suffering of people.
Hat Yai, known as a trading hub, hosts many businesspeople. Among them is Arak Rujirasirikul, a private businessman, who said that about 20 years ago, before building his house, he decided to raise the land by 2 meters above road level and took out home insurance with coverage exceeding 16 million baht, even though the area had no previous flood history.
Later, although Hat Yai experienced floods, the raised foundation kept water from reaching the house, minimizing impact. However, during the major 2025 flood, water surged to nearly 2 meters high inside the home, causing nearly one million baht in damage. In addition, burglars broke in to steal valuables, and after the flood receded, when electricity was restored, the transformer in front of the house exploded, causing a fire. It was a painful and exhausting ordeal.
Nearly two months later, the house has been cleaned and repaired for habitation. Initially, he did not file an insurance claim because he was unaware of the coverage. Then, a Thanachart Insurance agent informed him he was covered for natural disasters and could claim 200,000 baht, which helped partially recover some losses. This year, those without insurance might decide to get coverage, but with rising risks, will premiums increase?
. Vichinee Orapan, Chief Executive Officer of Thanachart Insurance Public Company Limited, said that overall, the floods and earthquakes in 2025 may have caused reinsurance costs in the market to rise, but not by double digits. This is partly because reinsurers assess risks nationwide, and Thailand remains a small market compared to global portfolios.
Therefore, in 2026, although insurance premiums in Thailand will not increase substantially, fire insurance, IAR, and property insurance may see coverage limits tightened or restrictions increased. Some areas might have differentiated pricing based on risk levels, depending on each company's internal management.
For Thanachart Insurance, which renewed policies from July 2025 onward, no increase in reinsurance prices was encountered, and it is confident that car insurance premiums in 2026 will remain stable at levels close to current rates.
In 2026, over 90% of business will still be car insurance, but the company plans to expand more aggressively into home insurance. Thanachart Insurance's claims data from southern flood incidents show that 34% of policies had fire insurance coverage under 20,000 baht, and only 6% had coverage over 200,000 baht. This indicates significant market potential, as many insured have coverage insufficient to cover actual losses.
However, it emphasized that the flood-related claims from southern Thailand in 2025 did not adversely affect its insurance portfolio because risk calculations had been made in advance to prepare for such disasters. The company continues to promote insurance awareness and expand all product lines steadily.
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