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Ayala invests P1B in logistics business

AYALA CORP. (AC)’s infrastructure unit is investing more than a billion pesos to grow its logistics business, as the conglomerate capitalizes on opportunities in the growing e-commerce industry.
AC Infrastructure Holdings, Inc. formally launched on Monday Entrego Fulfillment Solutions, Inc., its 60-40 joint venture company with Brillant 1257 GmbH & Co. Vierte Verwaltungs Kg (Brillant), a subsidiary of Zalora operator Global Fashion Group (GFG).
“Total investment is over a billion until next year. We see a lot of opportunities, and a lot more space that can be entered into,” AC Infra President and Chief Executive Officer Jose Rene D. Almendras said in a press briefing in Makati on Monday.
Entrego started out as the logistics division of Zalora Philippines in 2013, before being transformed into a joint venture firm between GFG and AC Infra. The company offers integrated fulfilment solutions such as management of parcel, documents, and bulk deliveries for business-to-business (B2B) and business-to-consumer (B2C) clients.
Mr. Almendras said the investment will cover Entrego’s 12,000-square meter facility being built in southern Metro Manila. The facility will have the capacity to process more than 100,000 packages a day, and is expected to be completed by the fourth quarter of 2019.
“We are opening that next year, it will be our first automated sortation center, a sorting facility. The benefit is you can dock a whole truck of parcels, then it gets sorted to different parts of the country,” Entrego Chief Executive Officer Constantin Robertz said during the press conference.
This will boost the Entrego’s current capacity, which Mr. Robertz noted is “in the five-digits, tens of thousands.”
Mr. Robertz said the company has 45 distribution hubs across the country, ensuring 90% nationwide coverage for deliveries. It targets to have a total of 60 distribution hubs by next year to further expand its coverage.
Entrego’s customers include Zalora, with a share of less than 30%, and the Ayala Group, cornering less than 50%.
In September 2017, the Ayala group also acquired a 49% stake in Zalora Philippines operator BF Jade E-Services, Inc.
AC Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said the investment in Entrego will benefit their businesses in real estate, banking, telecom, health, automotive, and industrial manufacturing.
“Our business units overlap on several fronts and managing their supply chain and their fulfillment services needs to its customers is one such front where we see Entrego adding value,” Mr. Zobel said in a statement.
Mr. Almendras said they expect the business to profitable “soon.”
At the same time, AC Infra targets to unveil another similar partnership within the year.
“We’re targeting to have a launch for that one before the end of the year… Along the lines of what we have today,” Mr. Almendras said. He added that they are teaming up with a Nasdaq-listed company for this venture.
With its logistics business, AC Infra hopes to take advantage of the growth in the local e-commerce sector which is estimated to generate revenues of P185 billion and have 46.1 million users by 2020.
“E-commerce’s 10-year CAGR (compounded annual growth rate) is 40%. Imagine the volume there,” Mr. Almendras said.
Shares in AC jumped 2.03% or P18.50 to close at P928.50 each at the stock exchange on Monday. — Arra B. Francia

Avida aiming to attract millennials with Mandaluyong condo

AVIDA LAND Inc. is targeting millennials looking for a compact living space with its new project in Mandaluyong City.
Avida Land Manager for Project and Strategic Management Group Melissa D. Corpuz said Avida Towers Verge is hoping to attract millennials and young professionals as its units are designed for compact living, convenience and sustainability.
Located along Reliance Street, the first building of three planned for Avida Towers Verge will have 1,020 residential units.
A “sequel” to Avida Towers Centera, the Avida Towers Verge offers two types of units — a 22.90-square meter (sq.m.) junior one-bedroom that separates the bedroom from the living and kitchen areas ensuring privacy; and a 33.81 sq.m. one-bedroom unit. There is also an option to combine two units.
In an interview, Ms. Corpuz said the junior one-bedroom unit is designed to have a private nook where one can read and study, and an area where you can dine.
“We observed that buyers in Avida Towers Centera preferred these layouts. These types of units were the first ones to become sold out. The units are just the right size to service the needs of young professionals, and at the same time, meet their budget,” Jojo Fabricante, Avida Land head for innovation and design group, said in a statement.
Prices for the junior one-bedroom unit start at P4.2 million, while the one-bedroom units start at P6.7 million.
Avida officials also cited the project’s location as a key selling point, noting it is close to major roads like EDSA and the Metro Rail Transit (MRT).
Ms. Corpuz noted the project is two minutes away from EDSA, and a five-minute walk from the MRT.
Avida Towers Verge also has a clubhouse, indoor gym, play area, swimming pools, gazebos, and landscaped spaces. Its hallways are equipped with light sensors for energy efficiency, while residential unit windows use low-heat-gain glass.
The first tower of Avida Towers Verge is set to be completed by December 2023. — Vincent Mariel P. Galang

2018 grantees take center stage in QCinema festival

FOR ITS 6th edition, QCinema International Film Festival (QCinema) continues its thrust to advance the local film industry by providing substantial grants for film production to a select set of new independent features and documentaries in the Circle Competition and DocQC section.
Selected filmmakers under the Circle Competition section received a grant of P1.5 million each while filmmakers under DocQC section received P300,000.
The grantees retain their rights to the films they have created.
CIRCLE COMPETITION
The films selected under the Circle Competition section were Samantha Lee’s Billie & Emma, Timmy Harn’s DOG DAYS, Dan Villegas’ Hintayan ng Langit, Dwein Baltazar’s Oda sa Wala, and Gutierrez Mangansakan II’s Masla A Papanok.
The five filmmakers will vie for the Pylon Awards for Best Picture, Best Actor, Best Actress, Best Screenplay, and Best Artistic Achievement, as well as the NETPAC Jury Prize and Gender Sensitivity.
Billie & Emma explores the fleeting nature of love and life. Billie, who is forced to move to the province, meets Emma, an ambitious model student who gets pregnant. Together, they go on a journey of growth, laughter, and music.
DOG DAYS shows the story of half-black, half-Filipino Michael Jordan Ulili who wants to chase his dreams of becoming a basketball superstar. The rookie player believes he has special God-given powers to have what it takes but his journey leads him to face the reality of his fate.
In Hintayan ng Langit, Lisang, who has been waiting for two years in purgatory, is finally set to cross over. But a shortage of rooms forces her to share a room with a man from her past.
Oda sa Wala tells the story of Sonya, an old maid who crosses path with a mysterious corpse in her family owned funeral shop which suddenly brings her strange luck and fortune.
In Masla A Papanok, Mangansakan goes back to 1892 when a giant bird mysteriously appears in Maguindanao foretelling the fall and rise of colonial empires.
DOCQC
The DocQC section of the festival for documentaries will show Wena Sanchez’s All Grown Up and Hiyas Baldemore Bagabaldo’s Pag-ukit sa Paniniwala.
In All Grown Up, Sanchez tells a story of a filmmaker who, after years of nurturing and protecting her younger brother, is forced to question her ability to help the people she loves when her own daughter begins to have troubles of her own.
Bagabaldo’s Pag-ukit sa Paniniwala shows a five-year visual ethnography of the traditional yet practical orchestration of Semana Santa in a small town where religious wood carving is the livelihood.
QCinema runs from Oct. 21 to 30 at Gateway Mall (Cineplex 10); Robinsons Galleria (Robinsons Movieworld); and Ayala Malls Cinema in Trinoma and UP Town Center. Local screenings will run from Oct. 24 to 30 at SM Fairview, SM Megamall, SM Manila, and SM Southmall.
For more information, visit qcinema.ph.

Universal Robina, LT Group beware: San Miguel Food share sale may hurt

SAN MIGUEL Food and Beverage, Inc.’s $619 million share sale may bring more pain to other Philippine peers.
Analysts say the sale would more than double the supply of San Miguel Food stock available for trading, attracting investors who so far have steered clear from it because of a lack of liquidity. That could mean they’d dump other consumer-staples companies such as Universal Robina Corp. and LT Group, Inc. to raise cash for San Miguel Food.
“Many clients are interested, and most are looking at switching rather than use new money to buy the stock — particularly when the market is ugly,” said Rachelle Cruz, an analyst at AP Securities, Inc. “Even when times are good, a sale this big is accommodated usually at the expense of other stocks,” she said.
San Miguel Corp. has started taking orders to trim its 95.9 percent stake in San Miguel Food after cutting the offering size and price amid a market slump. The sale, coming about a year after the parent company started merging its food and drinks ventures, will expand San Miguel Food’s public float to at least 10 percent from 4.12 percent of total outstanding shares — currently the least among Philippine peers.
The selling price range indicates a valuation of 22 to 25 times estimated profits in the next year, cheaper than rival Universal Robina’s 28, according to data compiled by Bloomberg. The stock could then also be included in the nation’s benchmark Philippine Stock Exchange Index and even in global equity gauges should San Miguel make more shares available. That would add pressure on other consumer peers that have sunk this year on concern that higher inflation and a weaker peso will squeeze margins.
“This is not only about buying the biggest Philippine consumer company at a lower price,” said Gerard Abad, the chief investment officer at AB Capital & Investment Corp. He’s considering adding to his San Miguel Food holdings. “Based on earnings outlook, return on equity and valuation, San Miguel Food now stands out as the safest among consumer plays.”
Rizal Commercial Banking Corp.’s Reginald Reyes says switching from Universal Robina and LT Group may mean missing out on gains in the short term — the decline in Universal Robina’s coffee sales is slowing, while LT Group’s cigarette venture is now able to increase prices after a state clamp down on smuggling and illicit trade. Still, down the line he prefers San Miguel Food.
“I am still more bullish on San Miguel Food versus other consumer companies because it has more growth potential over the long term,” said Mr. Reyes, a trader at Rizal. “There are more short-term opportunities from those two other names because of their recovery stories, while one will wait longer for San Miguel Food as the market digests the share sale.” — Bloomberg

Gov’t makes full award of T-bills

By Karl Angelo N. Vidal, Reporter
THE GOVERNMENT made a full award of the Treasury bills (T-bills) it auctioned off on Monday even as rates climbed across all tenors as some investors believe inflation has already peaked.
The Bureau of the Treasury (BTr) borrowed P15 billion as planned at its T-bills auction yesterday. The offer was oversubscribed as demand from investors totaled P24.51 billion, higher than the P17.861 billion recorded at last week’s offering.
Broken down, the government borrowed P4 billion as planned via the 91-day tenor yesterday as tenders amounted to P7.317 billion. The average rate for the papers climbed 54.8 basis points (bps) to 4.952% from the 4.404% logged in the auction last Oct. 8 and following the full rejection the Treasury made for the tenor last week.
For the 182-day T-bills, the Treasury borrowed the programmed P5 billion out of the P7.343 billion offered by banks and other financial institutions. The average yield likewise rose by 16.5 bps to 6.059% from the 5.894% quoted in the previous offering.
The government also made a full award of the 364-day papers, accepting the programmed P6 billion out of total offers amounting to P9.85 billion. Its average yield likewise increased 23.3 bps to 6.489% from last week’s 6.256%.
At the secondary market prior to the auction, the three-month and six-month papers were quoted at 4.9089% and 5.9036%, respectively, while one-year securities fetched a 6.5607% yield.
At the close of trading, the rates of the 91-day and 182-day securities climbed to 4.9286% and 6.0142%, respectively, while the 364-day T-bills rallied to fetch a lower yield of 6.2177%.
Deputy Treasurer Erwin D. Sta. Ana said the BTr fully awarded the T-bills as it saw a “good turnout” in terms of the total offers from investors.
“We saw some correction on the 91-day [papers] because if you compare the rates from the previous fully rejected auction, it’s a little bit lower than last week,” Mr. Sta. Ana told reporters yesterday, adding the Treasury also saw “quite reasonable increments” in yields for the 182- and 364-day papers.
Had the government made a full award of the three-month T-bills last week, the papers would have fetched a 5.067% average rate, higher than the 4.952% yield yesterday.
“We are thinking there is still reasonable liquidity going on, so the dealers are just waiting for some updated information on whether they should come into the auction or wait for a little bit more time,” Mr. Sta. Ana said.
“It is also an indication that some view it as inflation peaking already so it is a good sign.”
During its policy setting meeting on Sept. 27, the Bangko Sentral ng Pilipinas (BSP) said it expects inflation to have peaked last quarter, while supply shocks due to typhoon Ompong should be limited “to just a few months.”
BSP officer-in-charge Deputy Governor Maria Almansara Cyd N. Tuaño-Amador also said on Friday that inflation could “reverse more quickly” to below four percent next year supported by the central bank’s recent policy tightening moves as well as other measures implemented by the government to temper the pace of price increases.
Inflation surged to a fresh nine-year high of 6.7% in September, which brought the year-to-date average to 5%, well above the 2-4% initial target of the government. Last week, the multi-agency Development Budget Coordination Committee raised its 2018 inflation forecast to 4.8-5.2% from 4-4.5% previously.
The monetary authority has raised interest rates by a total of 150 bps since May to arrest inflation and price increase expectations.
Meanwhile, a bond trader said the auction result yesterday was within market expectations.
“Given that the rates were quite high, it was really attractive for investors at this point, so demand was strong for the short end,” the trader said in a phone interview yesterday, adding that the recent strength of the peso was also factored in by the market.
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in T-bills and another P90 billion in Treasury bonds.
DOLLAR BONDS ON TRACK
Meanwhile, the Treasury said it is “still on track” with its dollar-denominated global bond offering.
“We are still on schedule as far as the US dollar offering is concerned,” Mr. Sta. Ana said.
Officials from various government agencies, including the BSP and the Treasury, are in the United States for a non-deal road show to “update” investors regarding the Philippine economy.
Aside from this, the government is also looking at offering retail Treasury bonds with a three- or five-year tenor this quarter or in the first three months of 2019.
“We are looking at the market conditions and where interest rates will be heading based on the inflation print,” Mr. Sta. Ana added.

Showroom for FLI Prestige projects

Filinvest Land Inc. (FLI) recently unveiled the showroom for two projects under its Prestige brand — The Glades at Timberland Heights townscape, and The Prominence. Located at Vinia Residences along North Avenue, EDSA, Quezon City, the showroom features interactive architectural landscapes, dioramas, and virtual reality tour of the projects’ facilities. “We have integrated modern technology with classy interiors for an interactive yet sophisticated experience, true to the lifestyle that we have envisioned for our projects under the Prestige brand,” Francis V. Ceballos, Filinvest Senior Vice President for the Northeast Cluster, said in a statement. The Glades is located within the 677-hectare Timberland Heights in San Mateo, Rizal, while The Prominence is a 7.9-hectare community in Batasan Hills, Quezon City.

Halloween slashes franchise record with $77.5 million launch

LOS ANGELES — Halloween made a killing in North America, earning $77.5 million when the slasher film launched in 3,928 locations.
David Gordon Green’s Halloween, a direct sequel to John Carpenter’s 1978 classic, obliterated the franchise record opening of $26 million, previously held by the 2007 Rob Zombie reboot. Halloween also notched the second-best start for an R-rated horror film following It’s $123 million launch. It also landed the second-highest debut for an October release, set earlier this month by Venom with $80 million.
Overseas, Halloween generated $14.3 million from 23 markets for a global start of $91.8 million. Halloween cost just $10 million, marking another win for Jason Blum and Blumhouse Productions, who co-financed the film with Miramax. Halloween surpassed Paranormal Activity 3 ($52.5 million) for the best debut to date for Blumhouse.
“I am enormously proud of this film,” Jason Blum said in a statement. “Halloween brings the franchise back to life in a fresh, relevant and fun way that is winning over fans and critics alike.”
Universal’s Halloween is the 11th installment in the series, five of which have starred Jamie Lee Curtis as iconic avenging babysitter Laurie Strode, who is now a grandmother in the newest take. Halloween is now Curtis’ biggest opening to date, as well as the best horror opening with a female lead. It’s also the biggest launch ever with a female lead over 55 years old.
Carpenter returned to executive produce and compose the score for the R-rated thriller. The follow-up has garnered some of the best reviews for a series entry yet. While the last few iterations have been panned, Halloween holds a 80% average on Rotten Tomatoes and a B+ CinemaScore.
October’s box office receipts continue to impress as Venom and A Star Is Born deliver healthy numbers in their third outings. After Venom’s two-week reign atop domestic box office charts, Sunday estimates show Sony’s superhero movie led by Tom Hardy was narrowly defeated by Lady Gaga and Bradley Cooper’s A Star Is Born for second place. A Star Is Born pocketed another $19.3 million, while Venom follows close behind with $18.1 million for solid domestic totals of $126 million and $171 million, respectively.
Goosebumps 2: Haunted Halloween also cashed in on the spooky spirit, picking up $9.7 million to land in fourth place. That brings its North American tally to $28 million. Rounding out the top five is Universal’s First Man, which notched $8.5 million this weekend for a total of $30 million. Damien Chazelle’s space epic, which holds a $60 million price tag, dropped roughly 46% in its second frame. — Reuters

BSP eyes new clearing house for bills payments

By Melissa Luz T. Lopez, Senior Reporter
THE BANGKO Sentral ng Pilipinas (BSP) is eyeing to roll out another clearing house meant to process bills payment transactions online, as they see a strong push from the retail space.
Vicente T. de Villa III, officer-in-charge of the BSP’s Financial Technology Sub-Sector, said they are studying the creation of another automated clearing house (ACH) that would focus on immediate clearing and credit for paying utility and other consumer bills, which would also include payments for government services.
“To meet this 2020 target would involve creation of other ACHs to facilitate other types of payment schemes, particularly including government payments into the picture,” Mr. De Villa said in a press briefing last week.
“This would probably involve the coordination and collaboration of PPMI (Philippine Payments Management, Inc.) to be able to review and actually push forward the creation of a bills payment ACH.”
He is referring to the central bank’s goal to raise the share of e-payments to 20% of all transactions in the Philippines by 2020, coming from a measly 1% share back in 2013.
The BSP rolled out the Philippine Electronic Fund Transfer System and Operations Network (PESONet) last year, a platform which compiles all interbank fund transfer instructions, runs a batch process, and credits the amount to the receiver by the end of the banking day.
Meanwhile, InstaPay processes real-time transfers worth P50,000 or lower, with the money sent to the destination account in a matter of seconds or minutes.
“The volumes we are seeing right now, for InstaPay there has been a catapulting increase ever since its launch. For PESONet, since its launch in November, we’ve been seeing steady volumes. [This is] showing that there is more appetite, for now, for close to immediate clearing,” Mr. De Villa added.
The central bank has required all banks and other financial firms to offer electronic banking portals and interbank transfer schemes in place by Nov. 30.
BSP Governor Nestor A. Espenilla, Jr. previously said that he is particularly targeting to shift government payments onto digital platforms, which include the payout of worker salaries, tax collections, and even loan proceeds from state agencies.
Sought for comment, Secretary Benjamin E. Diokno said on Friday that the Department of Budget and Management is by itself trying to go more digital.
“We’re trying to computerize everything, we’re moving into that direction,” the Cabinet official told reporters. “It will be more efficient.”
Apart from new clearing houses, Mr. De Villa said the BSP is separately working to develop and adopt new tools for faster online payments, including the use of quick response (QR) codes for fund transfers.
Deputy Governor Chuchi G. Fonacier has said that the central bank is on track to setting a standard for QR codes by yearend, which will allow retail customers to make payments by scanning an image using their smartphones.

Grab Philippines beefing up safety features for users

By Vincent Mariel P. Galang
GRAB Philippines (MyTaxi.PH, Inc.) unveiled on Monday its “Safer Everyday Tech Roadmap” which aims to address safety concerns of both drivers and passengers.
During its launch on Monday, officials from Grab said the road map aims to raise transport safety standards for the ride-hailing industry.
Grab’s features have been improved, guided by four principles: know who you ride with; get help when you need it; build new and safer habits, and protected at every touchpoint.
For instance, Grab has started using identity validation schemes for drivers and passengers.
“Last month, we started rolling out passenger validation, wherein our new and existing users will have to link their profile. Verify their identity either by linking it to a social account or a credit or debit card,” said Cindy Toh, country marketing head of Grab Philippines, during her speech on Monday.
Grab will soon launch the driver selfie authentication, where drivers can only start to drive after a selfie check.
Grab drivers can also now share their live GPS location with their loved ones, in case anything happens.
Ms. Toh said an emergency button on the Grab app will “connect them to the nearest police station and Grab will partner with an external security agency that can provide immediate assistance when needed.”
To ensure its drivers remain in the right shape to continue driving, Grab is launching a “Driver Fatigue Monitoring Model.”
“It is a smart model taking into account different kinds of data, like the number of hours the driver is on the road, age, shift and total booking he accepts… The system will send out in-app messages reminding you to take a break. This is for the safety of both the drivers and the passengers,” Ms. Toh explained.
On data protection, Grab is making sure its system can detect and prevent any fraud or malicious activities on the platform.
“Safety is not just about physical things… It’s also about fraud detection, putting up secure mechanisms, so that anyone who transact on the app, sure ka na lahat ng data mo [you are sure that all you data] is protected,” Ms. Toh said.
“This tech road map gives a clear framework of how to go about our safety initiatives as we move forward into the future,” she added.
As added safety measure, each Grab car will also have its own first aid kit. Grab is also aiming to create a group of drive safety ambassadors to act as first responders in case of road accidents.
Grab teamed up with the Philippine Red Cross (PRC) to provide first aid training for its partner-drivers.

Groundbreaking for Peaklane

Anchor Land Holdings, Inc. recently broke ground for its first residential condominium in Davao City, saying this will address the surge in demand for accommodations in the city. In a statement, Anchor Land said the two-tower 202 Peaklane will be located across Ateneo de Davao University. It will offer over a thousand units, ranging from studios to two-bedroom units. The company said it is targeting students, starting families, tourists, and entrepreneurs. “With its innovative building features and future-ready spaces, 202 Peaklane will be on top of providing topnotch quality of living in Davao. It will serve as the best alternative for hotel accommodation and the best option for vertical living in the city,” Elizabeth L. Ventura, president of Anchor Land, said in a statement.

World Travel Expo expects 30,000 visitors, focusing on millennial market for its third year

THE World Travel Expo returns for its third year with bigger discounts and deals for local and international destinations.
The expo will run from Oct. 26 to 28 at the SMX Convention Center, Pasay City.
The three-day expo, located at the Function Halls 3 to 5 of the convention center, will feature almost 300 booths from inbound and outbound travel operators, cruise lines, hotels and accommodations, and themed tours, among others.
“In the first year of World Travel Expo, we had 10,000 walk-in visitors and in the second year, we had 20,000 visitors. So now, we’re targeting 30,000 people this year,” Goddfrey Dimaandal, PR and advertising director of the fair, told BusinessWorld at the sidelines of the launch in September.
Local destinations “we have so many good beaches” and Asian destinations are some of what Mr. Dimaandal expects to be very popular during the expo.
“Of course, Boracay will be returning since the expo runs at the time the island is reopened. There are a lot of people inquiring regarding booking flights and accommodations to Boracay,” he said.
Outside of the Philippines, Mr. Dimaandal said Taiwan, by virtue of it being visa-free until the end of the year, is also a very popular destination for Filipinos, while Japan and South Korea remain perennial favorites.
He said they are expecting to see more people book group tours because “Filipinos love traveling in groups, it’s happier, and it’s cheaper.”
Among the 30,000 expected guests, Mr. Dimaandal said they are focusing on getting the millennial market on board as this is the segment “who loves travelling.”
“They are the ones who love to spend money on travel and experiences, unlike the Gen X who are focusing on their life plans and don’t they travel as often as millennials do,” he said, explaining that the Gen X-ers, in their experience, travel only once or twice a year unlike millennials who travel around five to six times a year.
The World Travel Expo 2018 will run from Oct. 26 to 28 at the SMX Convention Center in Pasay City. The expo is open from 10 a.m. to 7 p.m. Tickets are priced at P50. For more information visit www.worldtravelexpo.com.ph; e-mail worldtravelexpo.ph@gmail.com; or call 579-7185 or 0977-811-1688. — Zsarlene B. Chua

PHL insurance gap at $4.9 billion

THE PHILIPPINES is one of the countries with the largest insurance gap even as the country is susceptible to natural disasters and effects of climate change, a report from Lloyd’s said.
In a statement on Monday, the insurance and reinsurance market said the country had the third-highest insurance gap out of the 43 countries surveyed with $4.9 billion, equivalent to 1.3% of its gross domestic product (GDP).
The Philippines only lagged behind Bangladesh which had an insurance gap equivalent to 2.1% of GDP and Indonesia with 1.4% of GDP.
In terms of underinsurance, or the expected losses that will exceed insurance coverage, the country’s shortfall amounted to $4.2 billion.
Meanwhile, the country’s insurance penetration, or total premiums as a percent of the economy, remains at 0.6% of GDP, although higher than the 0.4% in its 2012 report.
Lloyd’s said the insurance gap in the country is still prevalent as the Philippines is among the most exposed to natural disasters.
“Bangladesh, India, Vietnam, Philippines Indonesia, Egypt and Nigeria each have an insurance protection rate of less than 1%. They are also among the most exposed countries to risks such as climate change and some of the least able to fund recovery efforts,” Lloyd’s said in its 2018 Underinsurance Report.
The report cited the Joint Typhoon Warning Centre, saying 19 typhoons enter the Philippine area of responsibility, nine of which make landfall.
Aside from this, the Philippines is also prone to volcanic eruptions and earthquakes as the country is situated along the Pacific Ring of Fire.
Lloyd’s said Filipinos are still unable to invest on insurance policies as annual incomes remain low at just under $3,000 per capita.
“This has a dampening effect on investments in insurance, disaster prevention measures and early warning systems that help disasters before they occur,” the UK-based insurer said.
Last month, the government met with officials from Lloyd’s as well as the World Bank in London as they seek to expand the risk management policy on government assets as it ramps up its infrastructure thrust amid natural calamities.
“We are embarking on a large infrastructure program and we expect to spend somewhere $150 and 170 billion in improving our physical infrastructure. Leaving it and building it without thinking about risk management is irresponsible,” Finance Secretary Carlos G. Dominguez III earlier said. — Karl Angelo N. Vidal

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