PH fails to get reinsurers for gov’t assets at risk from natural disasters | Inquirer Business

PH fails to get reinsurers for gov’t assets at risk from natural disasters

By: - Reporter / @bendeveraINQ
/ 04:07 AM December 26, 2019

National Treasurer Rosalia de Leon / INQUIRER FILE PHOTO

The government has failed to hire reinsurers for the planned one-year program to protect government assets in areas prone to natural disasters.

National Treasurer Rosalia de Leon told the Inquirer there was a “failed bidding” for the P2-billion national indemnity insurance program of the state-run Government Service Insurance System (GSIS).

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GSIS officials did not respond to queries from the Inquirer last week.

The GSIS had allowed interested reinsurers to submit bids until Dec. 11, a one-week extension from the initial Dec. 4 deadline. The contract would have covered a one-year period starting Dec. 19, 2019.

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The national indemnity insurance program was aimed at “[obtaining] an indemnity insurance with reinsurance support from the international market through the services of a reinsurance broker,” the GSIS said.

“The reinsurance broker shall structure an indemnity insurance policy and secure reinsurance placement. The indemnity insurance policy shall be backed by catastrophe modeling and risk analysis for the government’s strategically important assets. The reinsurance broker shall also help in accessing the reinsurance market, secure the best reinsurance arrangement and rate, and ensure prompt claims handling and settlement and loss recoveries from the reinsurer for the national government’s strategically important assets and its subsequent reinsurance,” bid documents read.

In particular, the contract will insure the bridges and roads of the Department of Public Works and Highways in 25 provinces as well as schools of the Department of Education in 32 provinces and the National Capital Region against fire, lightning and natural catastrophes—including earthquakes, floods, storm surges, typhoons and volcanic eruptions. INQ

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TAGS: Business, Natural Disasters
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