The government is preparing to launch a welfare policy protecting citizens from natural disasters by adopting a disaster insurance system to compensate affected people.
On 25 Aug 2026 GMT+7, Deputy Prime Minister Pakorn Nilprapunt revealed plans to use an insurance system to manage risks from worsening climate crises. Currently, the super El Niño phenomenon severely impacts the world, including Thailand, which faces a budget loss of 40-50 billion baht annually for disaster relief and recovery. With limited state funds, the government must shift from reactive response to prevention and preparedness.
After studying foreign models, especially Japan's widespread use of disaster insurance, the Thai government adapted the system to fit local context by having the government pay basic disaster insurance premiums to citizens as welfare, under the supervision of the Office of Insurance Commission (OIC).
The new disaster insurance system covers three main natural hazards: floods, earthquakes, and storms. It targets about 20 million households in risk areas. Its key feature is that when a qualifying disaster occurs, insurance companies will pay compensation directly to citizens immediately, without waiting for government disbursement processes, enabling faster, higher, and broader financial support.
“Using the insurance system not only helps citizens receive faster and more adequate compensation, but also allows the government to control budget limits clearly and save relief funds to invest in long-term disaster prevention systems,” said Pakorn.
The Deputy Prime Minister plans to formally present this approach at the upcoming off-site Cabinet meeting (Cabinet in Motion) in Songkhla next week for principle approval, aiming to implement the system as soon as possible by 1 Oct 2026 GMT+7, in line with the Prime Minister’s policy acceleration.