Foreign insurers lack confidence in Thai water management
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The Finance Ministry is planning discussions with foreign insurance firms, as their growing reluctance to join flooddamage reinsurance may rock foreign investor confidence in Thailand.
“Foreign insurers have stopped taking in flood reinsurance as they lack confidence in Thailand’s water management system. This is crucial. No matter how much the government is doing in rehabilitating industrial estates, investors need allrisks insurance or they could relocate investment,” Finance Minister Thirachai Phuvanatnaranubala said today.
Finance Permanent Secretary Areepong Bhoochaoom is assigned to lead a delegation to meet foreign insurers, where the government’s water management plan would be unveiled to win back their confidence. In a recent discussion, Singaporean insurers suggested the necessity of an effective water management plan.
According to the ministry, factories in seven inundated industrial estates are insured for a combined amount of Bt600 billion. Some of them filed damage claims worth Bt200 billion, 60 per cent of which is reinsured by Japanese insurers.
Thirachai noted that the government initially planned to invest Bt15 billion to rehabilitate floodhit industrial estates. He said farmers in the Central region may have to grow only two rice crops a year, so that their land can be turned to reservoirs during the rainy season. For this, they should win compensation from the government. Meanwhile, more dams should be built, preferably within a year.
“It’s a must that the government unveils its water management plans as soon as possible. We can manage it, as we know where the water comes from and where it will go. It’s predictable, unlike tsunami or earthquakes,” he said.
