Munich Re and JLT Philippines have jointly unveiled a novel solution for businesses and government agencies in the Philippines that covers costs incurred for preparations made against potential storm impact.
Unlike traditional insurance, which covers actual losses, their “One Storm Philippines” solution pays out in response to pre-defined triggers such as high wind speeds, reported the Philippine Star.
This means that without incurring actual calamity losses, policyholders can get insurance coverage based on their proximity to a storm’s path, and the wind speed in their location.
Municipalities and local governments in the Philippines can insure themselves for the costs of fortifying a number of utilities and properties such as water treatment facilities, community centres, public schools and hospitals to be storm-ready.
One Storm Philippines currently insures customers for a maximum of US$5 million per location and a minimum sum of $500,000. The insurance cover is applicable to all kinds of property, industry, and occupancy arrangements, whether on or off-shore, operational or under construction.
Businesses and government agencies can also insure themselves against actual losses—they will need to provide proof of costs incurred before, during and after the storm—as well as steps taken to manage storm damage. These can include wind and water protection measures, costs for clean-up after the storm, additional work hours which may be required from employees, and other costs associated with back-to-normal activities.