Sun Life has donated C$100,000 (approximately PHP 4.3 million) to support relief operations following the magnitude 7.8 earthquake that struck off the coast of Mindanao on June 8, 2026, joining several other insurers and financial institutions that directed resources to the affected regions in the aftermath.
The National Disaster Risk Reduction and Management Council (NDRRMC) reported that 173,000 families – approximately 724,000 individuals – were affected. Some 54,000 houses were damaged or destroyed, 725 infrastructure facilities sustained damage, and overall infrastructure costs reached PHP 1 billion as of June 14.
Sun Life split the C$100,000 equally between two organizations.
C$50,000 went to Save the Children Philippines, covering food packages, household supplies, hygiene kits, sleeping bags, cooking supplies, and portable solar-powered equipment. More than 300 families received assistance, reaching approximately 1,530 individuals – including an estimated 383 children. Priority was given to women-headed households, Indigenous communities, and families with young children, seniors, and persons with disabilities.
The remaining C$50,000 was directed to the Philippine Red Cross through a partnership with the Canadian Red Cross, supporting food, water, medicine, and temporary shelter delivery across Mindanao.
Sun Life Financial-Philippines Foundation, the company’s philanthropic arm, also distributed Hope Kits – sleeping mats, blankets, and mosquito nets – to 400 families through World Vision Philippines, and food packs to 750 families through ABS-CBN Foundation.
JJ Moreno, country head and CEO of Sun Life Philippines, said: “Our hearts are with the families and communities affected by this devastating earthquake in Mindanao. Sun Life has walked alongside the Filipino people for over a century, and we stand in solidarity with them during this difficult time and remain committed to supporting their path to recovery.”
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The Government Service Insurance System (GSIS), the state-owned insurer covering government employees and public assets, earmarked PHP 15.1 billion in emergency assistance for 608,343 members and pensioners affected by the quake. It also set aside an initial PHP 69.1 million in loss reserves to cover property damage claims from government agencies, spanning 4,403 insurance policies with a combined insured value of PHP 23.59 billion. General Santos City accounted for the largest concentration of affected, insured government properties.
“The earthquake highlights the critical role of insurance in protecting government assets and ensuring the continuity of public services,” said GSIS president and general manager Wick Veloso, who urged all government agencies with insured properties to file claims promptly.
CLIMBS Life and General Insurance Cooperative, a Cagayan de Oro-based cooperative insurer, also mobilized across Southern Mindanao. Working with the National Federation of Cooperatives in the Philippines (NAFECOOP) and the Cooperative College of the Philippines, CLIMBS coordinated relief assistance for affected members and policyholders.
“CLIMBS Life and General Insurance Cooperative is actively assessing reports from affected areas, evaluating insured losses, and coordinating support efforts for our member-owners, policyholders, employees, and partner communities,” said president and CEO Noel Raboy and chairperson Antonio Alcantara in a joint statement.
The industry’s on-the-ground response played out against a structural problem: the vast majority of the earthquake’s damage was not insured.
AM Best said insured losses from the event would represent only a small fraction of total economic damage, citing the Philippines’ catastrophe protection gap. The country carries a protection gap of approximately 98%, compared with a global average of 58%, according to the World Risk Index.
“The Philippines’ well-documented protection gap means insured losses will be a fraction of actual economic damage – most residential and SME properties in Mindanao simply are not covered,” said Mon Zandueta, CEO of KRM Reinsurance Brokers Philippines Inc., in a statement to S&P Global Market Intelligence.
National insurance penetration reached 2.03% of GDP in the first quarter of 2026, up from 1.89% a year earlier, according to the Insurance Commission (IC) – progress, but still below the regulator’s own 2% target and uneven in coverage outside Metro Manila.
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AM Best noted that Philippine insurers have been increasing their net retention of catastrophe risks in recent years, driven by the rising cost of global reinsurance.
Susan Tan, senior financial analyst at AM Best, said the shift has “heightened sensitivity to climate risks and exposed inaccuracies in traditional risk models,” which could lead to elevated underwriting volatility.
The Philippine Catastrophe Insurance Facility (PCIF) – which launched in July 2025 covering earthquake risks, with 12 participating domestic insurers – faced its first meaningful test with this event. AM Best expects the PCIF to absorb the primary layer of insured losses alongside direct insurers, with international reinsurers taking tail exposure from cedants that purchased cover.
Property insurance accounted for 36% of Philippine general insurance GWP in 2025 and is projected to grow at a CAGR of 8.0% through 2030, according to GlobalData, which identified intensifying catastrophe risk and rising demand for property cover as factors supporting the expansion.
AM Best’s Victoria Ohorodnyk framed the longer-term concern plainly: “The earthquake and the difference in insured and economic losses makes the case for disaster financing for the region to build up resilience to such events. A greater risk for insurers would be if an event happens in one of the more commercial centers in the country, such as Manila.”
