The natural catastrophes fund has come true

The natural catastrophes fund, initiated by the State in response to the 2011 floods, is going to generate between 15 and 20 billion THB (488 million and 651 million USD) in additional premiums, experts say. Thai Re, the only reinsurer having responded to the bid, will be entrusted with the management of the fund that the State will sponsor up to 50 billion THB (1.6 billion USD). The damages inflicted upon Thai Re by the 2011 floods is estimated at 10 and 14 billion THB (325 and 455 million USD). The company has posted a loss of 1.66 billion THB (54 million USD) in 2011.