MANILA, Philippines - The recent spate of earthquakes that rocked Haiti, Chile, Mexico and California has prompted the country’s top 25 non-life insurance firms to call for a review of policies and tariffs related to natural disasters.
At the start of the month, heads of the top 25 non-life firms met with officials of the Insurance Commission (IC) agreed to form a task force, which would formulate a road map based on the review. The team was given until the end of April to submit the roadmap.
In the same meeting, they resolved is to stop undercharging premiums for property insurance, and strictly follow the tariff to ensure that adequate funds are available if and when natural disasters strike.
Philippine Insurers and Reinsurers Association (PIRA) chairman Michael Rellosa said that the Philippines lies smack on the Pacific Ring of Fire.
“All of us in the insurance industry truly need to make sure we have enough resources to cover for losses,” Rellosa said.
The industry paid more than P11 billion in claims to those affected by the historic floods from tropical storm Ondoy, which devastatated the country last year.
The last devastating quake that severely affected the non-life insurance industry occured in 1990, resulting in the loss of lives and properties, including an international hotel in Baguio City and a major school in Nueva Ecija in Central Luzon.
Rellosa added that majority of Filipinos do not have insurance for their homes, and many of those with property insurance only have the basic fire coverage. He advises the public to get in touch with their insurers and review their policies to make sure they are covered for earthquakes.