Flood impact on Thai insurers ‘manageable’— S&P

The floods have caused Thai banks $13m in losses, the ratings agency said.

Thailand’s insurance sector should be able to manage the impact of floods in the country’s north region, reports S&P Global Ratings.

Flooding hit several provinces in Thailand in October 2024, including Chiang Mai. Damages are estimated at $900m or approximately 0.17% of the country’s GDP, according to data from the Thai Chamber of Commerce. 

Floods in the north and northeast have specifically caused $13m (THB420m) in losses for insurers to date. This should be manageable for the insurance sector, S&P said in a commentary.

“Over the years, insurers have taken significant steps in risk management and modelling of flood-prone hotspots,” the ratings agency said, adding that Thailand is flood-prone and has experienced large floods in the past, such as in 2011 and 2017.

S&P said that it will continue to monitor further losses in Thailand’s insurance industry, along with whether flood risks will spread to central and southern regions of the country.