Yuanta says HMPRO and ADVANC benefit from floods, while insurers face rising claims risk

The Office of the Insurance Commission, or OIC, has issued guidelines for claiming compensation for damage in flood situations. Secretary-General Chuchat Pramulphon emphasized that the safety of life and property must come first, and that people should not risk entering flooded areas merely to take photos or collect evidence. For cars flooded by water, Type 1 auto insurance covers flood damage, while Type 2+ and Type 3+ policies require checking whether additional flood coverage is included. The OIC has set guidelines for assessing damage to combustion-engine vehicles according to five water levels: Level A, water reaching the car floor mats, with repair costs of approximately 8,000 to 10,000 baht; Level B, water reaching the seats, with repair costs of approximately 15,000 to 20,000 baht; Level C, water reaching the lower part of the console, with repair costs of approximately 25,000 to 30,000 baht; Level D, water reaching the upper part of the console, with repair costs of 30,000 baht or more; and Level E, the car fully submerged, which should be considered a total loss. For electric vehicles, or EVs, the damage to the battery must be considered together with damage to the vehicle itself and the specifications of each brand and model. For homes, residences, buildings, or damaged property, policyholders should check their policies to see whether they include natural disaster or flood coverage and what the coverage limit is, take photos or videos showing both wide shots and details, and prepare a list of damaged property before notifying the insurance company. The OIC has also set up a central hub of insurance claim channels for all companies in one place, which can be checked via the website www.oic.or.th and the LINE Official Account @OICCONNECT, and it has opened the 1186 hotline around the clock.

Sens. Elizabeth Warren and Josh Hawley have opened a probe into how leading home and auto insurers process claims, following a Wall Street Journal investigation into the rising chances of no payout. Warren, a member of the Senate Banking Committee, and Hawley wrote Friday to six of the biggest insurers, seeking data and explanations for the increasing risk faced by many Americans that a claim will result in no payment. The letters ask State Farm, Allstate, and others to disclose the breakdown of home and auto claims they have closed without payment, including how many were formally denied. The senators said the findings raise serious questions about whether consumers can trust their insurance companies to hold up their end of the bargain when disasters or emergencies occur, and questioned whether companies are using increasingly aggressive claims-handling practices, including tactics to delay payments, to drive up profits. U.S. property and casualty insurers reported $31.2 billion of underwriting profits for the first half of this year, nearly triple the $10.9 billion for the same period last year, according to a report last month from rating firm AM Best, which said higher premiums and lower payouts on claims helped drive the profits upturn. A State Farm spokesman said the insurer is reviewing the senators' letters, while a spokesman for Allstate didn't respond to requests for comment.