Urgent Need To Win Foreign Insurance Firms' Confidence: Thirachai

[webfact]

Urgent need to win foreign insurance firms' confidence: Thirachai

Wichit Chaitrong

The Nation

The Finance Ministry is planning discussions with foreign insurance firms, as their growing reluctance to join flood-damage reinsurance may rock foreign investor confidence in Thailand.

"Foreign insurers have stopped taking in flood re-insurance, lacking confidence in Thailand’s water management system. This is crucial. No matter how much the government is doing in rehabilitating industrial estates, investors need all-risks insurance or they could relocate investment," Finance Minister Thirachai Phuvanatnaranubala said today.

Finance Permanent Secretary Areepong Bhoocha-oom 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 re-insured by Japanese insurers.

Thirachai noted that the government initially planned to invest Bt15 billion to rehabilitate flood-hit 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, preferrably within a year.

"It’s a must that the government unveils the water management 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.

-- The Nation 2011-11-02

[rogerdee123]

" ...... Singaporean insurers suggested the necessity of an effective water management plan."

hmmmm ...... imagine that.

[Soutpeel]

" ...... Singaporean insurers suggested the necessity of an effective water management plan."

hmmmm ...... imagine that.

Quite...who would have thought of having an effective water management plan in an area which is prone to flooding....

[Thai at Heart]

As far as I know, getting flood insurance is next to impossible anyway. So now it is completely impossible.

Of course, what to do now with all those factories that will get paid out once, and be unable to re-insure themselves ever again.

What would you do with the payout? Rebuild or re-locate?

[wintermute]

Insurance companies would have to be dumb to flood insure factories in Thailand. There's just so much corruption and backhanded fraud going on. Not to mention the Thai government probably plans on passing the buck on flood losses to foreign firms.

[siampolee]

This campaign from a country that actively discriminates against foreign ownership in many fields.

We don't want you but we want your money.

Edited November 2, 2011 by siampolee

[Nisa]

Not sure about other places in the world but if you live in even a remotely flood prone area in the USA, it is near impossible to get flood insurance from the private sector. You need to get the insurance through the government and it is very limited in terms of how much it will cover. One of the big problems during Katrina was trying to convince insurance companies the damage was from the hurricane and not flooding.

Point being is that I don't believe too many insurance companies are in the habit of insuring people who live in a flood plane and whose city was built on a swamp and is barely above sea level.

Edited November 2, 2011 by Nisa

[travelmann]

sorry cant stop laughing :lol: :lol: :lol: :lol:

[travelmann]

Insurance companies would have to be dumb to flood insure factories in Thailand. There's just so much corruption and backhanded fraud going on. Not to mention the Thai government probably plans on passing the buck on flood losses to foreign firms.

I have already explained that rather than blame this on mis management, inappropriate tree felling or ANY wrong doing on Thailands part it will be solely down to "global warming" phew thats that one nicely swept under the carpet then

[rogerdee123]

Flood insurance should be one of those investment opportunities reserved for Thai insurance companies.

[wintermute]

Insurance companies would have to be dumb to flood insure factories in Thailand. There's just so much corruption and backhanded fraud going on. Not to mention the Thai government probably plans on passing the buck on flood losses to foreign firms.

I have already explained that rather than blame this on mis management, inappropriate tree felling or ANY wrong doing on Thailands part it will be solely down to "global warming" phew thats that one nicely swept under the carpet then

The drawback to that plan is if they take the route on blaming global warming then they may shoot themselves in the foot permanently be establishing the region as being permanently "unstable" for investment due to environmental hazard. Then no insurance firm will touch it at all.

As it is i'm wondering how they are trying to convince foreign insurance companies to cover them here. There's no way any sensible western insurance company will do such a thing at least not without major concessions in the background.

[Soi Sauce]

And then the gov. sez this:

MINIMUM WAGE

No delay to wage hike

The Nation

Deputy Prime Minister and Commerce Minister Kittirat Na-Ranong today insisted that the government will impose the minimum wage hike in April as scheduled, despite calls from the private sector for a delay in light of severe flooding.

He said that the increased wage will help stimulate the economy, as higher income would push up purchasing power.

Federation of Thai Industries Chairman Payungsak Chartsuthipol retorted that if the policy is imposed without any postponement, the manufacturing sector would revise its plan to set up a fund. Earlier, on expectation for a delay in higher wages, the FTI considered setting up a Bt70 billion fund. The fund will be distributed by companies, which expect to benefit from the government’s policy to cut corporate tax rate from 30 per cent to 23 per cent next year.

So you cannot insure your premises and have to pay above market rate for your staff. Then, you gotta pay for the flood relief thru a fund.

Thailand: Pure Genius.