The Southeast Asia Disaster Risk Insurance Facility (SEADRIF), the Philippine Department of Finance and Gallagher Re have signed a EUR2.046m ($2.29m) grant agreement with the InsuResilience Solutions Fund (ISF) to support the development of a sovereign disaster risk financing programme for the Philippines.
The initiative aims to strengthen the country's financial resilience through risk transfer solutions, better public risk information and analytics, and enhanced institutional capacity.
The programme includes the development of a sovereign insurance solution to provide rapid and predictable financing following disasters. It will also strengthen the National Asset Registry System (NARS) through improved public asset data, enhanced risk analytics and expanded capabilities to support government financial decision-making.
The Philippines experiences an average of 20 tropical cyclones annually, alongside frequent earthquakes, exposing public services, communities and the economy to significant risks.
InsuResilience Solutions Fund Head Annette Detken said the partnership would complement existing indemnity insurance with an index-based solution to help maintain essential public services, including education and healthcare, following disasters.
SEADRIF Insurance Company CEO Benedikt Signer said the programme would strengthen the foundations of financial resilience by developing financing mechanisms, data and institutional capabilities together.
Philippine Department of Finance Treasurer Sharon P Almanza said the grant would support the development of disaster risk financing solutions tailored to the country's evolving risk profile and complement existing disaster risk financing and insurance initiatives.
She added that the programme would help the government access rapid liquidity to respond more effectively to disasters and safeguard essential public services.