Bangkok--20 Feb--Mascot
Aon, as the world’s leader global provider of risk management, insurance, reinsurance brokerage, human resource and outsourcing solutions is equipped to assist its clients in evaluating these exposures and protecting them wherever possible. Through its more than 61,000 colleagues worldwide, Aon unties to empower results for clients in over 120 countries via innovative and effective risk and people solutions through its global resources and technical expertise.
Yoottana Kingkawkantong Executive Vice President Aon Thailand said last year’s flooding in Thailand was the worst in 50 years, left over 600 dead, caused misery to thousands of others produced an estimated US$ 12 to US$ 15 billion of insured losses and created widespread supply chain disruptions. Many of the losses were uninsured, especially the Consequential Loss arising from interruption to normal business activity resulting in lost income, profit and customers. The economic effect to Thailand will be many more billions of dollars as businesses try to recover their competitiveness regain lost export opportunities and the Government and Industry pour billions of Baht into more effective water management to avoid similar future losses. The Thai Insurance Market will predominantly record a loss for 2011 and many will have to re-capitalized or merge to maintain their ability to remain in business in the future. International reinsurance have also been hard hit with many recording significant losses on their book of business in Thailand. Some have withdrawn from supporting the Thai Market altogether, whilst others have reduced coverage and increased pricing substantially especially for the catastrophic perils. Whist the physical damage and loss can be readily identified and dealt with the loss in production is more difficult to guage. The impact on supply chains for the electronics and auto industries impact manufactures outside of Thailand as computer and auto-components are exported around the world. Disruptions to these Thai supply chains therefore have a significant impact to industries in Japan, Europe and USA. As a result of this recent flooding we believe all industries should re-evaluate not only their own physical exposure to similar incidents, here in Thailand but the effect that such a widespread event has on their ability to supply other industries and ensure that there are viable alternatives to production.
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