Philippines to relaunch P&C state protection bid

January 15 2020 by Yvonne Lau

The Philippines government is set to relaunch a reinsurance programme to cover state infrastructure.

Philippines national treasurer Rosalia de Leon, noted that the bidding for the program failed despite a deadline extension, as noted to the Philippines Business Inquirer. The program contract is a one-year program — and would have covered the period from December 19 of last year until the same date this year.

Late last year, the government of the Philippines signed a memorandum of understanding (MoU) with its own Government Service Insurance System (GSIS) in a US$19.6 billion protection scheme. The scheme, called the National Indemnity Insurance Program, seeks coverage for catastrophe exposures and other property risks.

Insured state assets include infrastructure such as roads, bridges and schools across 25 provinces in the country’s eastern seaboard. Protection will be provided against damages from natural catastrophes including typhoons, earthquakes, floods; fire, lightning and more – much needed in a country highly vulnerable to weather-related disasters.

The timetable for the new bid is yet to be finalised.

The Philippines in November of last year, also secured two Singapore-listed catastrophe bonds from the World Bank — meaning up to US$75 million in coverage from earthquake losses and up to US$150 million from tropical cyclone losses.

MORE FROM: Catastrophe