MANILA – The Philippine government on Wednesday said it has successfully insured 25 provinces on the eastern seaboard with a maximum insurance cover of P20.49 billion.
In an emailed statement, the Department of Finance (DOF) said the Parametric Insurance Policy took effect 12:01 a.m. on Wednesday, Dec.19.
Under the program, the Government Service Insurance System (GSIS) will provide catastrophe risk-insurance coverage, particularly for the Department of Education, as well as 25 disaster-prone provinces.
The 25 selected provinces are:
Albay
Aurora
Batanes
Cagayan
Camarines Norte
Camarines Sur
Catanduanes
Cebu
Davao del Sur
Davao Oriental
the Dinagat Islands
Eastern Samar
Ilocos Norte
Ilocos Sur
Isabela
Laguna
Leyte
Northern Samar
Pampanga
Quezon
Rizal
Sorsogon
Surigao del Norte
Surigao del Sur
Zambales
The World Bank – through its International Bank for Reconstruction and Development – acts as the intermediary to transfer GSIS risks to the global reinsurance market market.
In turn, the Bureau of Treasury (BTr) is the designated policyholder, representing the 25 provinces and the national government.
Finance Assistant secretary Paola Alvarez said that with the BTr as the policyholder, funds will be disbursed faster.
“Since the Bureau of Treasury is the policyholder, the funds will be mobilized faster to the first responders, namely, the national government and the LGUs [local government units],” she said.
The firms involved in the insurance policy are Nephila, Munich Re, Swiss Re, AXA, Hannover Re, Hiscox Re, Allianz Re Switzerland, AP3 (Tredje AP-fonden), and SCOR. (GMA News)
