The Insurance Commission, the Philippines’ insurance regulator, will review its mandatory catastrophe insurance proposal to align with the government’s direction as well as climate change.
According to Insurance Commissioner Emmanuel Dooc, the body will look into requiring catastrophe insurance for all middle-class residential buildings and small and medium enterprises (SMEs). This measure aims to protect owners and occupants from calamities such as earthquakes and floods.
A draft executive order had been submitted to the Office of the President last year, but then-President Benigno Aquino III did not sign it.
“We know that the plate is full and that there are many ongoing initiatives, but we hope that this matter should also be addressed,” Dooc told the Manila Standard
. However, he admitted that the executive order is only a temporary solution, as legislation should be passed for the long-term development of this initiative.
According to Lloyd’s, the Philippines is one of the countries that are most exposed to disaster risks. The City Risk Index, a joint study by Lloyd’s and the University of Cambridge, revealed that Manila’s economic exposure is the world’s largest at 50.28% of average annual GDP.
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