Philippines: CAT pool talk as Taal rumbles on
Source: Asia Insurance Review | Feb 2020
Discussions are underway to form a catastrophe insurance pool in the Philippines as the local market looks to find a more sustainable solution for CAT coverage amid soft property rates.
Philippine Insurance & Reinsurance Association (PIRA) executive director Michael Rellosa said the regulator is supportive of the move although the idea is still in the early stages of planning.
“We want to address the sliding rates on property by creating a CAT facility which would allow us to purchase excess of loss cover as a group thus maximising our retentions as well. We had a meeting recently with the World Bank, the Philippine Insurance Commission (IC) and our association members and there seems to be wide acceptance of the idea,” he said.
Philippines lies on the ‘Ring of Fire’ which makes the country prone to earthquakes and volcanic eruptions. At the time of writing, the Taal volcano was on the brink of an explosive eruption as authorities evacuated more than 17,000 people within a 14km radius from the main crater. A