It will allow insurers to take in more catastrophe risks.
The Philippine Insurance Commission (IC) is looking to roll out the country’s first private sector-led catastrophe insurance facility in Q1 this year, according to a statement.
IC Commissioner Dennis Funa said IC has worked with the National Reinsurance Corporation of the Philippines and the Philippine Insurers and Reinsurers’ Association in finalising the Philippine Catastrophe Insurance Facility (PCIF), which will allow non-life insurers to cede their catastrophe risks to the facility.
The PCIF, which will then share the pooled risks back to the non-life insurers, will allow insurers to more efficiently manage their catastrophe exposures and boost their capacity to take in more catastrophe risks.
It will also create a more risk-appropriate rating environment that would ensure sustainable catastrophe premium rates and provide a wider access to catastrophe insurance protection, Funa said.
Currently, local insurers that provide catastrophe coverage currently reinsure their risks overseas.
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