Thailand’s property insurance sector is set on a trajectory of steady growth over the next five years, driven largely by increasing exposure to natural hazards such as floods, earthquakes, and other extreme weather events. According to data from GlobalData, gross written premiums (GWP) are projected to rise from $1.7 billion in 2026 to $2 billion by 2030, reflecting a compound annual growth rate of 5.22%.
Recent catastrophic floods in southern Thailand have caused widespread devastation, with the Ministry of Finance estimating economic losses exceeding $14 billion. The disaster has exposed vulnerabilities in the country’s risk modelling and highlighted significant gaps in insurance coverage. Figures from the Thailand General Insurance Association indicate that flood-related insured losses alone could reach $1.4 billion.
Earlier, on 28 March 2025, a powerful 7.7-magnitude earthquake in Sagaing, Myanmar, was felt as far afield as Bangkok, underscoring the region’s seismic risks. Structural failures such as the collapse of the Chatuchak high-rise building have prompted rigorous scrutiny of building resilience, regulatory adherence, and policy limitations.
During the mid-November 2025 flooding, insurance companies in Songkhla province received more than 500 property damage claims within days. The Office of the Insurance Commission (OIC) anticipates that the total number of claims across the southern region could exceed several thousand once full assessments are completed.
The recent spate of disasters has revealed enduring protection gaps. Many property policies lack flood coverage, or include restrictive limits and exclusions. To address these challenges, the OIC’s 2026–2030 insurance development plan emphasises enhanced risk management, stricter underwriting standards for natural catastrophes, digital claims processing, and efforts to reduce coverage gaps.
GlobalData has warned that actual losses may surpass forecasts due to higher-than-expected claims from natural events. In response, insurers are increasingly offering multi-risk and condominium policies, providing flexible solutions for households and small-to-medium enterprises. The sector is also leveraging artificial intelligence and advanced data analytics to improve underwriting accuracy and accelerate claims processing.
Despite high insurance and reinsurance costs, Thailand’s property insurance market is expected to remain resilient. Average loss ratios are projected to stay below 35% from 2026 to 2030, reflecting a market strengthened by the dual pressures of natural catastrophes and innovation-driven adaptation.