A  technical tie up between the Japan International Cooperation Agency (JICA) and state pension fund Government Service Insurance System (GSIS) seeks to provide financial cover to public assets against the risks of natural disasters. 

“Through this project, we aim to leverage Japan’s knowledge and experience as a disaster-prone country, like the Philippines, to establish reasonable insurance premiums that account for the vulnerability of public assets to disaster risk. This will ultimately promote pre-disaster investment as well, which JICA has extensively collaborated on with the Philippine government,” JICA director Kido Takehiro said.

The initiative began with the establishment of a joint coordinating committee (JCC) and the deployment of Japanese experts.

At the ASEAN+3 meeting last year, Disaster Risk Financing was established as a regular agenda item under the ASEAN+3 finance track, underscoring its importance to the region. 

Relative to the Disaster Risk Financing Initiative, JICA has committed to its first cooperation project in the Philippines which focuses on exploring insurance solutions and other financial products, facilitating knowledge exchange and developing technical solutions.

Wider cover

Over the next three years, the project aims to bolster GSIS’ ability to reference replacement values and verify the adequacy of insurance amounts. It also seeks to minimize potential damage and financial losses, enabling a faster recovery.

The JCC, primarily composed of officials and staff from GSIS, Department of Finance (DoF), Bureau of Treasury (BTr), and the JICA Expert Team, will provide guidance in determining replacement costs, calculating risk-based premium rates, enhancing underwriting capacity, and raising awareness of public insurance services.

In the first three months of implementation, GSIS and the JICA expert team will develop a detailed design survey to outline specific activities and expected outcomes, aligning with the DoF’s National Disaster Risk Financing and Insurance Strategy and the Bureau of Treasury’s ongoing development of the national asset registry system.

JICA reaffirmed its commitment to supporting GSIS’ capacity development, which may enhance the increase of insurance coverage of public assets and protecting the country’s critical investments and development achievements against disaster risks. 

The Philippines is currently considered as the most vulnerable country in the world from natural calamities.

It will host the next Asia-Pacific Ministerial Conference on Disaster Risk Reduction (APMCDRR) in partnership with the United Nations Office for Disaster Risk Reduction (UNDRR) this October in Manila. 

By maintaining strong cooperation and collaborative efforts, both Japan and the Philippines aspire to provide a more resilient and secure future for Filipinos, according to JICA.