Disaster cover on businesses set

The facility will allow businesses and households to recover faster after incurring huge losses arising from disasters such as typhoons and earthquakes

The long-awaited tool to make local businesses resilient against natural disasters called the catastrophe insurance facility will be rolled out within the first quarter.

Insurance Commissioner Dennis Funa disclosed that the scheme is already on its final stages, as the Insurance Commission is currently coordinating with other concerned institutions including the National Reinsurance Corp. of the Philippines and the Philippines Insurers and Reinsurers’ Association.

Dubbed as the Philippine Catastrophe Insurance Facility (PCIF), the insurance pool will share its pooled risks back to non-life insurers, enabling such companies to manage their catastrophe exposures more efficiently while boosting their capacity to take in more risks.

“We recognize the significant role that the non-life insurance industry should play in ensuring the Philippines’ catastrophe resilience and in bridging the catastrophe insurance gap that we need to urgently address as our country is among the most vulnerable to the onslaught of natural calamities,” Funa said.

Swift recovery ensured

Funa noted the facility will allow businesses and households to recover faster after incurring huge losses arising from disasters such as typhoons and earthquakes.

Still, Funa explained that the PCIF will establish a more risk-appropriate rating environment that would ensure sustainable catastrophe premium rates and provide the public wider access to catastrophe insurance protection.

The Philippines was considered to be among the most vulnerable countries to natural disasters, given its frequent typhoon visits and recent string of earthquakes.

In 2020, the Taal volcano broke its dormancy, bringing a notable damage to agriculture within the affected areas.