IC still optimistic about insurance for catastrophes

MANILA--The Insurance Commission (IC) is willing to discuss with the Duterte administration other options to create insurance products that will address the effects of climate change on properties.

This, despite the fact that a draft executive order (EO) for catastrophe insurance was not signed under the previous administration.

Insurance Commissioner Emmanuel Dooc, in a briefing Tuesday, said the draft EO was “the product of our discussion with the industry”.

The draft EO provides a mandatory insurance coverage against fire, earthquake, and flooding due to typhoons for residential unit owners and small and medium enterprises.

Dooc said they have submitted a letter to the current administration to push anew for a mandatory catastrophe insurance “but I believe they are considering other options”.

“I think we have to pursue it, discuss it with them, with the leadership. We know that the plate is full and that there are many ongoing initiatives but we hope that this matter should also be addressed,” he said.

“From the pronouncement of our President and the members of his Cabinet, they are definitely in favor of addressing the climate change issue. Maybe we have to revisit it and make a new submission to the leadership. It’s really important, they know it,” he said.

Philippine Insurers and Reinsurers Association (PIRA) chairman Augusto Hidalgo, during the same briefing, said the discussions between insurance companies and the government on this issue is targeted to increase the people’s access to protection products as well as to financial instruments.

He said PIRA recently co-sponsored with the United Nations (UN) a framework convention on climate change and one of the speakers was Climate Change Commissioner Emmanuel de Guzman.

De Guzman disclosed his readiness to sustain talks about this topic, Hidalgo said.