The SEADRIF Insurance Company conducted a mission in Manila in July to meet with the Department of Finance (DOF) of the Philippines and key government departments and agencies involved in Disaster Risk Finance and Insurance (DRFI). The purpose of the mission was to discuss how SEADRIF can best support the Philippines' national DRFI strategy, assess demand from interested agencies, and agree on a joint work plan moving forward.
During the mission, the leadership team of SEADRIF Insurance Company also held productive discussions with the Bureau of Treasury (BTr), the Government Service Insurance System (GSIS), Department of Budget and Management (DBM), Department of Agriculture (DA), Philippine Crop Insurance Corporation (PCIC), Insurance Commission (IC), and the Philippine Insurers and Reinsurers Association (PIRA) - all critical stakeholders in implementing the government’s DRFI strategy. The SEADRIF team also had meetings with senior officials at the Asian Development Bank (ADB) to explore new opportunities for collaboration to strengthen ASEAN’s climate resilience.
The Philippines has long been a global champion in building financial resilience to disasters and climate risks. The government is a pioneer in adopting innovative financial instruments, including the placement of Asia’s first subnational parametric insurance program and Asia’s first sovereign catastrophe bond, among others. In 2015, the Department of Finance adopted Asia’s first national disaster risk finance strategy, which has since guided the government’s efforts.
Work remains to be done to scale up the use of insurance as a key component of the government’s risk finance strategies. Hurdles include scarcity of specialist skills in technically complicated areas such as risk modeling, actuarial analysis, product structuring, and market engagement, along with the complexity of efficiently engaging international insurance markets to ensure value for money.
“As a development insurer, SEADRIF was established to support the cost-efficient and effective design and implementation of risk transfer products. We work with governments to design products and support efficient access to international markets to provide new protection and scale up existing programs. As a regional risk pool, SEADRIF also acts as an aggregator to pool risk among members and build a diversified portfolio.
We appreciate the excellent hospitality and collaboration provided by the Department of Finance and all entities that contributed to the success of the mission in the Philippines.” said Mr. Benedikt Signer, Executive Director and Board Member of the SEADRIF Insurance Company.
