Bangkok: PM2.5, more than just dust, is causing a staggering 2 trillion baht in economic damage to Thailand, prompting urgent calls for structural solutions from insurance companies.
According to Thai News Agency, the Insurance Operations Center for Disaster Management and Assistance (ICD Center) organized a seminar titled "From Dust to Risk: The Role of Insurance in the PM2.5 Era." The event highlighted that the dust problem is a "systemic risk" affecting not only the economy but also health and the insurance industry.
Mr. Chuchat Pramoonphol, Secretary-General of the Office of the Insurance Commission (OIC), opened the seminar, revealing that various agencies have collaborated to tackle the PM2.5 pollution problem in Thailand. Measures such as working from home have already led to a significant reduction in office electricity costs by over 70% in the past two months, aligning with government policy.
Associate Professor Dr. Wisanu Attavanich from Kasetsart University explained the impact of PM2.5 on Thailand's economy, noting that Bangkok residents experience air pollution exceeding standards for 6-7 months annually. Thailand's air quality ranking has plummeted from 88 to 151 globally, despite economic growth, which reflects unsustainable development. Dr. Wisanu identified vehicles, industry, open burning, and transboundary dust as key pollution sources, particularly from older trucks and increased agricultural burning. The resultant air pollution inflicts damage exceeding $45 billion annually, or 3.89% of GDP. When hidden costs are considered, the impact on households reaches 2 trillion baht, equivalent to 11-12% of GDP.
In a panel discussion on "PM2.5 and the Risk Dimensions of the Insurance Business," Mr. Pornprom Wikitseth, Advisor to the Governor of Bangkok, highlighted that Bangkok faces three main pollution factors: urban dust, stagnant weather conditions, and dust from external burning. He stressed the importance of controlling black smoke and utilizing scientific data through "Dust Detectives" for effective problem-solving.
Mr. Anukul Yenjai, Board Member of the Thai General Insurance Association, noted the impact of dust pollution on the insurance business structure and proposed the development of preventative products like Parametric Insurance, which uses real-time dust levels for client protection. Captain Dr. Wuttiwong Somboonruangsri warned of the long-term effects on chronic diseases and rising medical costs.
All participants agreed on the necessity of the "Clean Air Act" as a vital mechanism to address structural issues. They emphasized that reducing dust at its source is a long-term cost for the country, warning that inaction could further strain Thailand's economy and the health of its people in the future.