You are cordially invited to join Sasin Research Seminar.

Examining the Collapse of Thailand’s COVID-19 Insurance

By Assistant Professor Chonawee Supatgiat, Ph.D. Faculty in Finance, Sasin School of Management Friday October 20, 2023, 12:00 pm -1:00 pm Venue: Room 201, Sasin School of Management. Please register here to reserve your seat. Summary: In 2020, Thai insurance companies profited from popular COVID-19 insurance policies due to low infection rates. However, increasing infections in subsequent years led to numerous insurer bankruptcies, leaving 700,000 policyholders uncompensated for 65 billion baht. We examine the factors contributing to the policy collapse that caused extensive damage to Thailand’s insurance industry. We find that ‘pay upon detection’ insurance policies are gambles on government policy rather than risk diversification. Profits depend on strict lockdown enforcement. We recommend treating such non-diversifiable risk products as gambling-type offerings. Moreover, before launching new products, insurance companies should conduct thorough cause-to-effect analyses to verify the independence of risk events.   For more information please contact Khun Nanthapak Pinyo at 091 479 4551, 02 218 4036 or researchseminar@sasin.edu.