Given the low insurance take-up in the Philippines, especially for homes, the insurance industry expects to see a wide divergence between insured and economic losses due to the 7.8 magnitude offshore earthquake that struck the southern part of the country on 8 June 2026.
The Philippine Insurers and Reinsurers Association (PIRA) in a communication on 08 June 2026 extended its deepest sympathies to the families, communities, and local governments of Southern Mindanao affected by the earthquake.” The quake has so far taken a toll of over 35 people and over 200 have been injured.
PIRA said that while early reports indicate damage to insured assets, however, losses, at this stage, are still unquantifiable.
“It is too early to assess insured losses. Claims are only beginning to trickle in, and a complete picture of the extent of damages will take several weeks to emerge. Our member companies stand ready to process and settle valid claims promptly and fairly.”
PIRA Executive Director Michael Ferre Rellosa said, “This tragedy underscores why being adequately insured against catastrophic perils is not a luxury but a necessity. We are presently seeing a flurry of seismic and volcanic activity even as a strong La Niña is set to exacerbate the coming typhoon season. The industry exists precisely for moments like these—to help our people absorb the shock, rebuild, and recover.”
In a statement AM Best Singapore Senior Director Analytics Victoria Ohorodnyk said, “Insurers have less exposures in the Mindanao area compared with the country’s more commercial centres, such as Manila. Given that backdrop and low insurance take-up in the Philippines – many homes are not insured - we would expect to see a wide divergence between insured and economic losses.
“Insurers in the Philippines are dependent on the global reinsurance market for transferring extreme earthquake risks and this event could cause reinsurers to re-evaluate their earthquake models and risk appetite. However, we do not anticipate a significant change in the risk appetite for non-loss affected regions in the short term.”
According to The Philippine Institute of Volcanology and Seismology, the tectonic earthquake occurred at a depth of 33 kilometres, with the epicentre 32 kilometres southwest of the coast of Maasim town in Sarangani Province on Mindanao Island. The town has a population of 700,000.
Philippines is one of the world’s most disaster-prone countries which is often hit by earthquakes and volcanic eruptions due to its location on the Pacific Ring of Fire, an arc of seismic faults around the ocean.