Philippines government property insurer offers parametric covers to cities

By Henry Gale

April 28 - (The Insurer) - Cities in the Philippines can now access parametric disaster insurance from the country's state-owned insurer of government assets.

The Government Service Insurance System (GSIS) said on Monday that it had recently begun offering parametric insurance to cities, in addition to the traditional indemnity insurance it already provides.

GSIS administers the Philippines' General Insurance Fund, established by a 1951 law that requires government entities to insure public assets with the fund.

GSIS said the parametric coverage would allow for the quick release of funds that cities can use for disaster recovery, although it did not specify which perils its parametric offerings cover. Last May, GSIS said it was planning to introduce parametric policies and gave earthquakes and typhoons as examples of perils that could be covered by the product.

"We believe this type of insurance will help many local government units as this does not require the traditional process of claims adjustment after a loss event. GSIS will pay out automatically when the triggering condition is met,” Valerie Marquez, GSIS' senior director for insurance, said at the time.