Over a million catastrophe insurance policies sold in two months
Thailand’s National Catastrophe Insurance Fund (NCIF) has seen a significant increase in take-up over the past few months. The fund was set up in the aftermath of the 2011 floods to offer affordable insurance cover against natural disasters.
From 28 March 2013 to 24 May 2013, a total of 1,017,419 catastrophe insurance policies were sold. Of those, 992,192 policies are insured, currently representing THB53.7bn ($1.7bn) in proportional reinsurance coverage and THB465m ($15m) in proportional reinsurance premiums.
National Catastrophe Insurance Fund chairman of the board Payungsak Chartsutipol said that over the past year of the fund’s operation it had had a significant role in resuming the Thai insurance industry to a normal situation at a faster pace than previously expected.
The fund also functioned as a major driving factor in providing risk management through insurance and reinsurance, which helped restore Thais’ and foreign investors’ confidence in pursuing business in Thailand, he added.
The fund offers coverage against damages from three main perils – flood, earthquake and windstorm – at insurance premium rates set between 0.5-1.25% of the sum insured.