The National Indemnity Insurance Program, or NIIP, an insurance for government assets, is now ready to be mobilized.

"I am excited to see this program finally come to fruition. This is just one of the many programs the BTr implements to enhance our resilience against disasters," Rosalia de Leon, former National Treasurer and now Monetary Board member of the Bangko Sentral ng Pilipinas, said.

BTr said in a statement the pilot insurance covers 132,862 school buildings of the Department of Education which have a total value of around P800 billion.

The BTr implements the NIIP in coordination with the Government Service Insurance System or GSIS.

The national treasury said the NIIP reduces extreme losses in government funds as it shifts away from the usual single-asset insurance purchase.

"A portfolio approach was taken to spread out the risk and maximize the available premium budget," the BTr said.

"We are also grateful to the GSIS that continues to be our partner in finding appropriate solutions to protect government assets against unforeseen losses," BTr officer-in-charge Sharon Almanza said.

The BTr said it covered the premium for the pilot program using the excess payout it received from the Catastrophe Bond.

According to the 2023 World Risk Index, the Philippines remained the most vulnerable to natural disasters with a relatively very high risk score of 46.86 out of 100.

"The country has held the top spot since 2011," Department of Finance Secretary Benjamin Diokno said.

Typhoon "Rai" or "Odette" alone, which was the strongest weather disturbance in 2021, caused damage worth over P17 billion to infrastructure, homes and buildings.