A ONE-YEAR World Bank-backed P20.49-billion parametric insurance policy for disaster-prone provinces in the Philippines takes effect today, the Department of Finance (DoF) said in a statement on Wednesday.
The program will cover damage to government assets like schoolbuildings from calamities like earthquakes and typhoons in 25 disaster-prone provinces in the country’s eastern seaboard, namely: Albay, Aurora, Batanes, Cagayan, Camarines Norte, Camarines Sur, Catanduanes, Cebu, Davao del Sur, Davao Oriental, Dinagat Islands, Eastern Samar, Ilocos Norte, Ilocos Sur, Isabela, Laguna, Leyte, Northern Samar, Pampanga, Quezon, Rizal, Sorsogon, Surigao del Norte, Surigao del Sur and Zambales.
The Bureau of the Treasury acts as policyholder, while payouts will be from the Government Service Insurance System (GSIS).
The P2-billion premium for the program was allocated under the 2018 national budget.
The World Bank, through its International Bank for Reconstruction and Development, acts as intermediary to transfer GSIS risks to the global reinsurance market. National Treasurer Rosalia V. De Leon said in the same statement that more international reinsurers participated in the program, namely: Hiscox Re, Allianz Re Switzerland, AP3 (Tredje AP-fonden) and SCOR, on top of reinsurers from last year, namely: Nephila Capital Ltd, Munich Re, Swiss Re, AXA and Hannover Re.
This is the Philippines’ second parametric insurance policy after first launched in July 2017 with a P10.4-billion maximum cover and a P1-billion premium for the same 25 provinces. — Elijah Joseph C. Tubayan

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