The Insurance Commission (IC) said it is working on a program of incentives to encourage non-life insurance companies to participate in the upcoming Philippine Catastrophe Insurance Facility (PCIF), including tax breaks.
Deputy Insurance Commissioner Erickson H. Balmes said in a forum Tuesday that the World Bank proposed the study of possible tax incentives the government can offer associated with the PCIF to make it more attractive and sustainable.
“Last month in our last meeting, the World Bank announced that they are going to be engaging a tax expert to look into how to create tax incentives for the pool so that in lean years, (tax) will be collected, and in good years, the tax incentive will be applied,” Mr. Balmes said during the roundtable arranged by the Asian Development Bank Institute (ADBI) and the Organization for Economic Cooperation and Development (OECD).
He said the IC aims to promote participation in the catastrophe pool by offering tax breaks. He did not elaborate, saying only that the details of the proposal are under review.