by Marie Kauna – EMTV Online, Port Moresby
Philippines’ is one of the most vulnerable countries in the world as it is prone to natural disasters, on average, the country experiences US$3.5 billion asset losses from typhoons and earthquakes, in a year.
To better respond to these losses from climate and disaster risks, Philippines’ has launched a new catastrophic risk insurance program. This program will see a total of US$206 million cover the national government losses plus losses from the 25 participating provinces.
Under the program, the Government Services Insurance System or GSIS will provide the government and the 25 provinces with risk insurance.This will support the country and the provinces in mitigating the financial impacts of climate change, weather, earthquakes and typhoons in the nation. Furthermore, it will boost the country’s operations in responding to immediate natural disaster emergencies around the country.
Joaquim Levy, Managing Director and Chief Financial Officer of the World Bank Group reported by the World Bank said “This new insurance program illustrates how the World Bank Group can leverage capital from the market to help governments receive fast cash injections for emergency response and to sustain essential services in times of crisis, empowering local governments to more effectively assist their citizens.”
The program was launched by the government, and supported by the World Bank (International Bank for Reconstruction and Development) and the U.K. Department for International Development.