Bangkok and Myanmar’s ‘ Big One’

The recent earthquakes that struck Myanmar and reverberated into Bangkok are a stark reminder of the seismic threats lurking beneath our feet — especially in disaster-prone regions like Southeast Asia. The tremors may have been hundreds of kilometers away, but their impact sends a clear signal to the Philippines, which uncomfortably sits right on the Pacific Ring of Fire. The Philippines must bolster its disaster prevention, preparedness, and recovery mechanisms before the next big one hits.

To date, more than 3,300 people have been reported dead. Property damage to buildings, roads and other structures could amount to billions. Local news in Bangkok showed a high-rise building, meant for the State Audit Office (a government office), capsizing during construction by China Railway Engineering No. 10 (Thailand) Co. and Xin Ke Yuan Steel Co. This raised concerns over possible violations of local laws, including those governing foreign ownership of certain businesses. Imagine if this happened in the Philippines — what a field day our legislators would have in aid of legislation.

Myanmar’s 6.0-magnitude earthquake, followed by tremors felt in Bangkok, highlights the vulnerability of urban centers even when the epicenter lies far from their borders. For a country like the Philippines, which is constantly exposed to earthquakes, typhoons and volcanic eruptions, such regional seismic events are more than just headlines — they are lessons.

Disaster resilience must become a national priority. While early warning systems, urban planning reforms, and strict enforcement of building codes are critical, another equally important but often overlooked component is financial preparedness. Natural disasters, aside from their human cost, bring billions in economic damages that can cripple communities and stall development for years. This is where the insurance industry, particularly catastrophe insurance, can play a transformative role.

Enter the Philippine Catastrophe Insurance Facility (PCIF) — a much-needed step toward improving the country’s disaster resilience. Launched in partnership among the Insurance Commission, non-life insurance companies, and foreign reinsurance companies, the PCIF is designed to provide pooled reinsurance for catastrophic events like earthquakes, typhoons and floods. By spreading risk across multiple insurers and enhancing access to affordable catastrophe coverage, the PCIF helps safeguard homes, businesses and critical infrastructure.

Unfortunately, insurance penetration in the Philippines remains remarkably low. According to industry reports, only a small fraction of households and MSMEs (micro, small and medium enterprises) carry any form of catastrophe insurance. This lack of coverage means that when disasters strike, many are left to pick up the pieces on their own — often relying on slow, inadequate government aid (local and national) or taking on debt to rebuild.

The private sector, along with government support, must work to change this landscape. Public awareness campaigns, subsidies for premiums for vulnerable sectors, and integrating insurance education into financial literacy programs can help. Moreover, local governments can also be mandated or incentivized to insure key infrastructure and public assets under the PCIF framework. Doing so not only protects critical services but also ensures faster recovery and continuity of governance after disasters.

The Myanmar and Bangkok earthquakes are a wake-up call, but they need not be a warning unheeded. As climate change and urbanization amplify the risks of natural catastrophes, the Philippines must act decisively. Strengthening disaster resilience is not just about reinforcing buildings — it’s about reinforcing communities, economies, and futures. With initiatives like the PCIF and broader engagement from the insurance industry, we can build a more resilient nation — one that not only survives disasters but emerges stronger from them.

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