Thai finance minister proposes high-value fruit insurance, EV premium changes

[webfact]

 

Exuding a wave of fresh optimism for the agricultural and green sectors, Finance Minister Arkhom Termpittayapaisith has floated a revolutionary proposal – the launch of insurance for high-value fruits.

 

A measure aimed at fortifying the faith of fruit farmers, the proposal was made during a compelling keynote speech at the CEO Insurance Forum 2023. The main theme for the forum, which was organised by the Office of Insurance Commission (OIC), revolved around “The Role of Insurance Business in Promoting Sustainable Social and Economic Growth”.

 

To build a cushion against the turbulence of natural disasters, existing insurance norms in the agriculture sector cover damage specifically to durian trees and other economic fruits. However, there’s a demand from fruit growers to extend this safety net to the fruits themselves. Shedding light on the practical challenges of such a move, Arkhom remarked that objections from insurance companies rest on the potential for massive reimbursements. For instance, in an episode that witnessed storm-induced damage to an orange orchard in Chiang Rai, the cost of compensation ran into hundreds of millions of baht.

 

Proposing a probabilistic risk assessment for insurance premiums, he expressed a desire to negotiate with the OIC for new policies that focus on the risk level of the fruits. He advocated that this innovative approach will augment the confidence level of high-value fruit cultivators.

Arkhom further touched upon the need for a strategic change in insurance norms for electric vehicles (EVs). He reasoned that high premiums are applied owing to the assumption that EVs incur mammoth repair costs. Offering a plausible solution, he indicated that risk-related stipulation of premiums could bear fruitful results.

 

by Alex Morgan 

Photo courtesy of thaipbsworld.com

 

Full story: https://thethaiger.com/news/business/thai-finance-minister-proposes-high-value-fruit-insurance-ev-premium-changes

 

-- © Copyright Thaiger 2023-07-21

 

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[Etaoin Shrdlu]

Private insurance companies have very little appetite for the risk of catastrophic losses associated with crop insurance.

 

Crop insurance will only work with significant involvement of government (taxpayer) resources such as subsidies and government-provided reinsurance. Even in the US, that bastion of capitalism, the Federal Government both reinsures crop insurance risks and subsidizes crop insurance premiums.

 

This isn't something that the insurance industry in Thailand would be able to handle by itself. This is a political issue, not a commercial one that can be solved by the OIC negotiating with Thai insurers.

[RichardColeman]

Probably has shares in a 'many small print clause' insurance company 

[billd766]

Having read the OP link I did not see any price or value of insurance at all.

[Callmeishmael]

Isn't he just a caretaker Minister?  Why is he proposing new programs?