The Insurance Commission plans to roll out this quarter the first private sector-led catastrophe insurance facility in the country that will ease the risks borne by non-life insurers from disaster-related claims.
IC Commissioner Dennis Funa said the Philippine Catastrophe Insurance Facility would allow non-life insurers to cede their catastrophe risks to this insurance pool, effectively allowing them to take in more risks.
The IC, National Reinsurance Corporation of the Philippines and the Philippine Insurers and Reinsurers’ Association worked together in finalizing the facility.
Funa added this would contribute to strengthening the country’s financial resilience against natural disasters as coverage for households and small businesses expand, hastening their recovery after incurring large losses arising from catastrophic events such as typhoons and earthquakes.
The facility also aims to create a more risk-appropriate rating environment.