Establishment of a compensation fund for natural catastrophes

The Thai government has set up a 1.6 billion USD compensation fund designed for natural catastrophes. Sixty local insurers get involved and provide coverage against natural catastrophes for the benefit of real estate owners and small and medium enterprises. The State decided to establish this fund following the 2011 floods. Local and foreign insurers abstain from covering natural catastrophes or insure them at exorbitant tariffs.