The floods in Thailand in 2011 were the worst for more than 50
years, with the Thai Finance Ministry estimating that the total
economic cost of flood damage could exceed US$6 billion. Some in
the industry regard this as a severe underestimate.
To date, it is estimated that the flooding in Thailand has cost
around US$3.3 billion in insurance claims. Both residential and
industrial areas in and around Bangkok have been affected by the
flooding, as several large industrial estates have been left
without facilities and resources. It is likely that large global
businesses will suffer as a result of this disruption.
This article highlights issues that are likely to arise when
insurance claims are brought in the wake of the flooding and
practices to be considered when deciding whether an insurance
policy responds to a claim.
