National Catastrophe Insurance Fund of Thailand: Companies in Thailand Take Out 3,745 Catastrophe Insurance Policies
BANGKOK, Jan. 31, 2013 /PRNewswire/ -- A report from the National Catastrophe Insurance Fund of Thailand reveals that foreign and domestic companies that suffered damage during the great flood of 2011 purchased a total of 3,745 catastrophe insurance policies between 28 March 2012 and 7 January 2013, with a total of US$470.7 million in proportional reinsurance funding (calculated using the exchange rate of 30 baht to one US dollar) in the industrial sector fund to offer protection in the event of disasters like floods, storm winds or earthquakes.
Companies, including world-leader vehicle and hard drive manufacturers, that were forced to suspend production following the flood have resumed their normal output. They did not move their production bases outside of Thailand after the Thai government reassured them by defining and implementing effective strategies to prevent future flooding and establishing the National Catastrophe Insurance Fund to take the place of foreign reinsurers in offering reinsurance services. This is the same method as other countries have used when major disasters have occurred, including Japan, the USA, Taiwan, and Brazil, to build confidence in the household and industrial sectors, and will help affected companies, including the Thai insurance system, to return to normal.
SOURCE National Catastrophe Insurance Fund of Thailand