I must confess that I have not written an op-ed for nearly a year, and I would like to thank the DAILY TRIBUNE desk for the opportunity to return.

For the past months, I focused on driving up sales at our non-life insurance company. Despite the daily corporate grind, I still perused the news on DAILY TRIBUNE every day and shared my thoughts on daily issues with colleagues, yet something felt amiss, and that was the sincerity and fulfillment brought about by writing.

With my focus on the insurance business, news on the Philippine economy and disaster resilience are what attracted me, less on politics and the political wranglings of our government leaders.

I noticed that the year 2024 brought a slew of typhoons towards the end of the year, but they were far less strong than the typhoons of previous years. It is still very early in 2025, but we have already seen a huge catastrophic event in California that should serve as a crucial wake-up call for the Philippines.

The recent wave of wildfires in California has underscored the increasingly critical role of insurance in managing natural disasters. As wildfires rage with more frequency and intensity due to climate change, the insurance sector’s ability to protect individuals, businesses, and communities has come under intense scrutiny. The impact of these fires is not just felt in terms of lives lost and destroyed homes, but also in the mounting insurance claims and the challenges insurers face in continuing to offer coverage.

In California, the number of wildfires has grown dramatically in recent decades. While insurance has long been a crucial tool for mitigating the financial risks of such disasters, many residents are now discovering that their insurance policies may not provide sufficient coverage. The primary reason for this is the skyrocketing costs associated with rebuilding homes and businesses in wildfire-prone zones. As fire seasons stretch longer and wildfires grow in intensity, the risks for insurers have increased significantly. Some have responded by hiking premiums, while others are simply refusing to renew policies in high-risk areas.

For Californians, this has led to a two-fold crisis: not only are they faced with the destruction of their homes and livelihoods, but they also find themselves unable to recover financially due to the high cost of insurance or the lack of coverage altogether. The increasing unreliability of the insurance market in high-risk areas threatens to exacerbate the already serious challenges posed by wildfires. This issue is particularly pressing because insurance, in many ways, is a lifeline for people affected by natural disasters. Without it, recovery becomes even more difficult, leaving communities struggling to rebuild their lives.

This situation is not unique to California. The Philippines, an archipelago prone to natural disasters ranging from typhoons to earthquakes, could face similar challenges. The Philippines has the highest disaster risk index in the world, according to the 2024 World Risk Report. This means that the Philippines has the lowest coping and adaptive capabilities when it comes to natural disasters. While the country has made strides in disaster risk reduction and preparedness, its insurance industry is still underdeveloped compared to more disaster-prone countries like Japan and the United States.

Ultimately, insurance is not just a financial tool — it is a cornerstone of disaster resilience. Governments must take bold steps to ensure that insurance can continue to serve its purpose in an increasingly unpredictable world. For the Philippines, the time to act is now.

For comments, email him at darren.dejesus@gmail.com.