Thailand Floods: An Event Update
The ongoing floods in Thailand that began in late-July have caused extreme human suffering and economic damage. Thailand has declared a third of its provinces to be disaster zones as the country battles rising flood waters. The flooding situation is likely to continue for a few more weeks and has been bearing down on Bangkok over the past few days. The Thai capital sits on the bottom of a flood plain which has an average elevation of less than 2m above sea level. As Thailand plays an important role in global commerce, industry and agriculture, the impact from the floods will be felt in food stores, electronic stores and auto showrooms around the globe. Thailand has long served as the world’s manufacturing hub for many products, from electronics to auto assembly and textiles. It is also the largest producer of rice in the world. The current floods are the worst Thailand has seen in the last 50 years and as such, will cost hundreds of millions in lost revenue for companies dependent on factories and supplies located in Thailand. At the time of writing the report, about half a million Thais are living in temporary shelters. Railways and major highways have also been affected. The event is likely to be the costliest natural disaster in Southeast Asia. While the overall insured loss has yet to be realized due to the on-going nature of the situation, there is a potential for substantial losses to insurers from different sectors like property, automotive and agriculture.
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Sastry Dhara
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Steve Bowen
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