Government considers new disaster insurance scheme

Japanese model that involves private insurers delivers quick compensation to victims

PUBLISHED : 16 Jul 2026 at 05:03

The government is developing a disaster insurance scheme in partnership with private insurers to provide faster and more substantial compensation to disaster victims while reducing pressure on the state budget.

Deputy Prime Minister Pakorn Nilprapunt said the government had been monitoring the increasing frequency and severity of natural disasters and exploring ways to strengthen assistance for affected communities.

The cabinet has instructed the Interior Ministry to study alternatives to direct state compensation, with the aim of increasing the level of financial support available to people affected by natural disasters.

The ministry has been working with the Finance Ministry, the Office of the Insurance Commission and the Thai General Insurance Association to examine a disaster insurance model broadly based on Japan's system for earthquakes, floods and windstorms.

Mr Pakorn said the proposed scheme would allow private insurers to share responsibility for compensation payments, reducing the government's fiscal burden. Claims could also be processed more quickly than under the current state compensation system.

He said private insurers had expressed interest in participating, while disaster victims would benefit from faster payouts and higher levels of compensation.

Mr Pakorn said the government provides compensation of about 9,000 baht for certain types of damage, an amount that is often insufficient to cover home repair costs. At the same time, he said, it would not be realistic for the government to shoulder the full financial burden.

Under Japan's model, insurance companies make prompt payments to victims following natural disasters, with premiums determined according to risk levels in each area.

"Disbursing government funds is often a complicated process and can sometimes be delayed, leaving disaster victims facing hardship while receiving only limited assistance because state payments are designed to cover everyone," Mr Pakorn said.

"With an insurance-based system, compensation would be paid according to clearly defined coverage limits. If losses exceed the insured amount, the government could consider providing additional assistance, but the fiscal burden would be much smaller."