Just as we hear that the flooding in the south has got more severe, as suggested earlier the financial impact of the northern and central floods will be on-going. The big international re-insurers are scaling back their exposure to the Thailand. That in turn means one thing: substantially increased flood premiums with more exclusions and deductibles in the contracts for householders and businesses, assuming such cover will indeed be found. So, standby for household premiums to soar

1 I try to avoid buying houses in areas prone to flooding.

 

2 For insurance costs, the options are limited. All the consumer can do is either find the most competitive quote & pay up, or just exclude flood cover.

 

3 Looking for positives, the insurance industry is cyclical & after the tsunami & flooding of 2011, perhaps it might be a good time to buy shares in solvent insurance companies.