Thailand’s property insurance sector is poised for steady growth over the next five years, driven largely by escalating catastrophe risks, including floods and earthquakes. According to 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 severe flooding in southern Thailand has inflicted widespread damage, with economic losses estimated at more than $14 billion, according to the Ministry of Finance. The events have underscored vulnerabilities in the country’s catastrophe risk modelling, while also bringing to light gaps in insurance coverage. Insured losses from the floods alone could reach up to $1.4 billion, as reported by the Thailand General Insurance Association.
The natural disasters follow a magnitude-7.7 earthquake that struck Sagaing, Myanmar, on 28 March 2025, whose tremors were strongly felt in Bangkok, further highlighting regional seismic risks. In addition, the collapse of the Chatuchak skyscraper has intensified scrutiny of structural resilience, regulatory compliance, and policy coverage limits, prompting calls for enhanced risk assessment.
In the immediate aftermath of the mid-November 2025 floods, insurers in Songkhla province recorded more than 500 property damage claims within days, with officials from the Office of the Insurance Commission (OIC) anticipating that total claims across the southern region could run into the thousands as assessments progress.
The recent catastrophes have exposed a persistent protection gap, with many property policies either lacking flood cover or containing sub-limits and exclusions. To address these challenges, the OIC’s Insurance Development Plan for 2026–2030 emphasises improved risk management, higher underwriting standards for natural hazards, promotion of digital claims processing, and the reduction of coverage gaps.
GlobalData notes that higher-than-expected claims from natural disasters are likely to push actual property losses above previous projections. In response, insurers are increasingly offering multi-hazard property and condominium policies, providing flexible solutions for households and small-to-medium enterprises. The sector is also embracing digital technologies, including AI and advanced data analytics, to enhance underwriting accuracy and accelerate claims handling, ensuring resilience and efficiency in a rapidly evolving risk landscape.
Despite rising costs for insurance and reinsurance, the property insurance market in Thailand is expected to remain robust, with the average loss ratio projected to remain below 35% throughout the 2026–2030 period, reflecting a market that is both challenged by natural disasters and strengthened by innovation and adaptation.