Thailand's Economy Remains Resilient Amid Earthquake Challenges
Finance Minister Assures Economic Stability and Continued Support for Earthquake Victims
Thailand's Finance Minister Pichai Chunhavajira announced on March 30, 2025, that the recent earthquake, which has reportedly damaged up to 5,500 buildings in Bangkok, has not adversely affected the overall economy.
The estimated losses from the earthquake may reach 100 billion baht, a figure significantly lower than the 150 billion baht incurred during the Covid-19 pandemic.
In his statement, Pichai emphasized that the operations of government agencies, state banks, and the financial system are functioning normally, despite the disaster.
The Ministry of Finance is closely monitoring the situation and has begun exploring additional measures to assist victims.
State-owned financial institutions have been instructed to implement liquidity support measures aimed at helping businesses recover.
This follows directives from the Office of Insurance Commission (OIC), which is collaborating with insurance companies to assess damages and potentially include earthquake-related losses in insurance coverage moving forward.
Somporn Suebthawilkul, president of the Thai General Insurance Association (TGIA), noted that the collapsed State Audit Office building was approximately 50% complete at the time of the earthquake, translating to an estimated insurance claim of around 1 billion baht.
The building was insured through Siam Consultants & Brokers with four companies providing total coverage of 2.136 billion baht, namely Dhipaya Insurance, Bangkok Insurance, Indara Insurance, and Viriyah Insurance.
Somporn indicated that Dhipaya Insurance has reinsured 95% of its coverage, thus managing the associated risks.
Requests for damage assessment have been submitted for 5,500 buildings throughout the capital.
Additionally, Nusara Banyatpiyaphod, president of the Thai Life Assurance Association (TLAA), affirmed that insurers are adequately prepared to handle claims related to this disaster without disruptions.
Despite the immediate concerns surrounding the earthquake, Thailand’s economic landscape remains focused on recovery and resilience, with the finance ministry actively engaging with stakeholders to bolster support for affected sectors and communities.
The estimated losses from the earthquake may reach 100 billion baht, a figure significantly lower than the 150 billion baht incurred during the Covid-19 pandemic.
In his statement, Pichai emphasized that the operations of government agencies, state banks, and the financial system are functioning normally, despite the disaster.
The Ministry of Finance is closely monitoring the situation and has begun exploring additional measures to assist victims.
State-owned financial institutions have been instructed to implement liquidity support measures aimed at helping businesses recover.
This follows directives from the Office of Insurance Commission (OIC), which is collaborating with insurance companies to assess damages and potentially include earthquake-related losses in insurance coverage moving forward.
Somporn Suebthawilkul, president of the Thai General Insurance Association (TGIA), noted that the collapsed State Audit Office building was approximately 50% complete at the time of the earthquake, translating to an estimated insurance claim of around 1 billion baht.
The building was insured through Siam Consultants & Brokers with four companies providing total coverage of 2.136 billion baht, namely Dhipaya Insurance, Bangkok Insurance, Indara Insurance, and Viriyah Insurance.
Somporn indicated that Dhipaya Insurance has reinsured 95% of its coverage, thus managing the associated risks.
Requests for damage assessment have been submitted for 5,500 buildings throughout the capital.
Additionally, Nusara Banyatpiyaphod, president of the Thai Life Assurance Association (TLAA), affirmed that insurers are adequately prepared to handle claims related to this disaster without disruptions.
Despite the immediate concerns surrounding the earthquake, Thailand’s economic landscape remains focused on recovery and resilience, with the finance ministry actively engaging with stakeholders to bolster support for affected sectors and communities.
