A proposed natural disaster fund would help with national risk management for catastrophic losses that could exceed the government's emergency budget capacity, says Mr Chuchatr.
The Office of the Insurance Commission (OIC) is proceeding with plans to strengthen Thailand's disaster risk management framework through a national disaster playbook and a proposed disaster insurance fund aimed at cushioning the economic impact of future catastrophes.OIC secretary-general Chuchatr Pramoolpol said the initiative comes as climate-related risks such as severe storms and earthquakes increasingly threaten households, businesses and fiscal stability.
As risks escalate, the insurance sector should play a critical role in absorbing large losses and reducing the burden on government finances during major disasters, he said.
The proposed disaster insurance fund is being studied by the OIC and stakeholders, with a first draft of the framework expected later this year.
The draft will be submitted to the OIC board for consideration before being forwarded to the Finance Ministry and later elevated for national approval, said Mr Chuchatr.
