This report presents the rationale for and design of a city government disaster insurance pool in the Philippines.
Insurance pools help governments enhance their financial preparedness for disasters, focusing on the provision of rapid post-disaster financing for early recovery. The Philippine City Disaster Insurance Pool was developed under the guidance of the Department of Finance as part of the 2015 Disaster Risk Financing and Insurance Strategy. It utilizes a parametric insurance structure, basing payouts on the occurrence of earthquakes and typhoons according to their physical features, rather than actual losses.
Author(s): Asian Development Bank
Publisher: Asian Development Bank
Year: 2018
Language: English
Pages: 65
City: Mandaluyong
Cover
Title
Copyright
Contents
Tables, Figures, and Boxes
Abbreviations
Acknowledgments
EXECUTIVE SUMMARY
1 Introduction
2 Assessing City Disaster Risk
Purpose of risk modeling
Modeling approach
City-level risk profiles
3 Existing City Government Post-Disaster Financing Arrangements, and Needs
Overview of existing instruments and actors
Use of disaster risk Financing by city government
Funding needs at the city level
4 Pool Structuring
Selection of the form of insurance
Overview and validation of proposed trigger structure
Proposed parametric index
Proposed legal and administrative structure
5 Premium Pricing and Aor ff dability
Costs incurred by insurance providers
Reinsurance considerations
PCDIP policy proposal
Premium affordability and funding sources
6 Benefits of Disaster Insurance Pools
7 Conclusions
Key Findings
Proposed structural characteristics of PCDIP
Proposed policy and premium characteristics of PCDIP
Glossary
