The Thailand Office of Insurance Commission has launched a CAT Scenarios Stress Test project to assess how large natural disasters could affect the insurance sector and to strengthen forward-looking supervision. The exercise is being developed as an industry-wide stress test tailored to Thailand’s risk profile, with the aim of measuring the effects on insurers’ financial positions, underwriting capacity, liquidity and the stability of the insurance system as a whole. The project is structured in four stages: reviewing international practice and developing a Thailand-specific testing framework, designing scenarios and loss assessment tools, conducting the stress test with insurance companies, and analyzing results to produce policy recommendations. The test will cover three main scenarios: a 1-in-200-year severe flood, a 1-in-200-year earthquake, and a same-year flood and earthquake scenario at 1-in-100 severity. Impacts will be assessed over a three-year period to capture both immediate stress and the recovery path. Completion is expected by December 2026. The Office said the results should help identify systemic risk and vulnerabilities across the Thai insurance sector and support the development of more proactive supervisory tools.
Thailand Office of Insurance Commission2026-07-24
Thailand Office of Insurance Commission launches CAT Scenarios Stress Test, covering 1-in-200 flood and earthquake shocks
The Thailand Office of Insurance Commission has launched an industry-wide CAT Scenarios Stress Test to measure how major natural disasters could affect insurers and the wider insurance system. The exercise will test 1-in-200-year flood and earthquake scenarios, plus a combined same-year 1-in-100 event, with impacts assessed over three years. The project is expected to finish by December 2026.