Courtesy of AIR: Govt cuts red tape in reviving reinsurance tender exercise

Updated: Aug 4

The Philippines will invite reinsurers to make a bid again for the planned PHP2bn ($40m) national indemnity insurance programme to insure and protect public assets in disaster-prone areas, this time with less stringent documentary requirements.


In a resolution, the interagency Government Procurement Policy Board (GPPB) said that it had amended tender documents for procurement of services from international brokers and reinsurers for the programme to be undertaken by the state-run pension fund Government Service Insurance System (GSIS), reported the Philippine Daily Inquirer.


In particular, the GSIS will now only require from bidders a statement of sovereign or government clients within the past 10 years, instead of a statement of all their ongoing and completed government and private contracts, including contracts awarded but not yet started, if any, whether similar or not similar in nature and complexity to the contract to be bid on, within the relevant period.

Bidders will also be required to furnish audited financial statements for calendar years 2018, 2019, 2018-2019, or 2019-2020 in accordance with international financial reporting standards, instead of the earlier requirement of having bidders’ audited financial statement received or stamped by the Bureau of Internal Revenue.

The GPPB has also made other requirements easier for bidders to meet.

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


Insurance plan for government assets


The insurance programme is aimed at obtaining reinsurance support from the international market through the services of a reinsurance broker for coverage of the public assets.


The indemnity insurance policy shall be backed by catastrophe modelling 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 claim handling and settlement and loss recoveries from the reinsurer for the national government’s strategically important assets and their subsequent reinsurance, according to the GSIS.


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


Last December, National Treasurer Rosalia V de Leon disclosed that a previous tender exercise had failed. The contract would have had covered the period 19 December last year until 19 December this year.


Link to original post: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/61856/Type/eDaily/Philippines-Govt-cuts-red-tape-in-reviving-reinsurance-tender-exercise

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