The Department of Finance (DoF), which now oversees the government-owned Philippine Crop Insurance Corp (PCIC), has said that it aims to make the company provide broader coverage and become less reliant on subsidies. Finance Secretary Carlos G Dominguez III, recently named the chairman of PCIC, said he had met representatives of the PCIC and the Insurance Commission to formulate a blueprint for the company for the next three years He told PCIC board members that the top priority for the company is to “stop its financial bleeding”, according to a report by Business World. He was speaking at the first meeting of the reconstituted PCIC board last week. The lead agency overseeing the company prior to 14 September 2021 was the Department of Agriculture (DA). The new PCIC board is chaired by the Finance Secretary while the Agriculture Secretary is vice-chair. “I trust this board will find the path to sustainability. Our farmers face the increasing likelihood of suffering losses due to severe and erratic weather events caused by climate change. Crop insurance is an effective instrument to mitigate dislocation and economic losses. The PCIC must be there to extend the widest coverage possible,” Mr Dominguez said. He also pointed out that the PCIC received subsidies totalling PHP23.3bn ($455m) during the past two years, and additional financial support of PHP5.3bn from the Agri-Agra Fund since 2015. Next year, the company is expected to receive PHP4.5bn in budgetary support from the national government. “This trend is not sustainable,” Mr Dominguez said. “The PCIC’s operations must be sustainable—if not totally subsidy-free. This requires a new business model and the most competent management of this service,” he added. Aside from expanding its operations, the PCIC should also determine how much the government is losing because insurance coverage is inadequate in the agricultural sector, he said. Source: asiainsurancereview.com

Quantitative data analysis shows that "climate-relevant" assets within equities, corporate bonds, loans and mortgages, sovereign bonds and real estate represent more than 35% of insurers' total assets, says the International Association of Insurance Supervisors (IAIS). Within equities, corporate bonds and loans and mortgages, most climate-relevant assets relate to the housing and energy-intensive sectors. These findings are in the 2021 special topic edition of the IAIS Global Insurance Market Report (GIMAR). This year, the report assesses how insurance sector investments are exposed to climate change, reflecting the findings of the first such global quantitative study. Type of transition Scenario analysis assessing the forward-looking impact of climate change shows that the magnitude of the impact is highly dependent on the type of climate transition considered. Compared to an orderly transition towards internationally agreed climate targets, a disorderly transition, or a scenario whereby climate targets are not met, would have a two to six times greater adverse effect on sector-wide solvency. For example, under a “disorderly transition” scenario, results show an absolute drop in insurers’ solvency ratio of more than 14%, increasing to almost 50% under a “too little, too late” scenario. Nevertheless, considering the solid overall solvency position of the global insurance sector, the sector as a whole appears to be able to absorb investment losses from all scenarios tested, GIMAR says. “This report underscores the importance for supervisors of assessing how climate change may affect the insurance sector and individual insurers and of developing an appropriate supervisory response,” said Jonathan Dixon, IAIS secretary-general. “The IAIS is committed to deepening the breadth and scope of our contributions to helping insurance supervisors mitigate the effects of climate change.” “Climate change is the defining challenge for this generation. The GIMAR uses data from our wide membership in combination with analytical tools to understand how the insurance sector is exposed to climate risk,” said Vicky Saporta, IAIS executive committee chair. Drawing on unique quantitative and qualitative data gathered from 32 IAIS members covering 75% of the global insurance sector, this report represents the first global deep-dive analysis on insurers’ investment exposures and supervisors’ views on climate-related risks. The report identifies key risks and vulnerabilities for the sector. The IAIS is a global standard-setting body whose objectives are to promote effective and globally consistent supervision of the insurance industry. Its membership includes insurance supervisors from more than 200 jurisdictions. Source: asiainsurancereview.com

The National Reinsurance Corporation of the Philippines (Nat Re), the country's national reinsurer, was recently recognised by the country's Institute of Corporate Directors (ICD) with two Golden Arrows for its good corporate governance practices, based on the Association of South East Asian Nations (ASEAN) Corporate Governance Scorecard (ACGS). Specifically, Nat Re was named one of the country’s Top 15 Insurance Commission (IC)-Regulated Companies (InsCos) out of a field of 119. “We are honoured to be recognised for our adherence to the region’s highest corporate governance standards. We strive to achieve our business goals while staying compliant with the law, meeting the highest ethical standards, and being guided by our company principles. We thank the IC and the ICD for this prestigious recognition,” said Allan R. Santos, Nat Re president and CEO. Nat Re and the other InsCos were assessed by the ICD based on their performance as benchmarked against the Organization for Economic Cooperation and Development (OECD) principles of rights of shareholders, equitable treatment of shareholders, the role of stakeholders, disclosure and transparency, and board responsibility. ASEAN Corporate Governance Scorecard (ACGS) The ACGS is a globally-benchmarked scoring system used for assessing the corporate governance performance of ASEAN listed companies. Its goal is to improve the corporate governance standards and practices of publicly-listed companies and InsCos. The IC, with its initiative to raise corporate governance practices in the insurance industry, mandated the adoption of the ACGS by all insurance companies and mutual benefit associations. For publicly listed companies such as Nat Re, the ACGS serves as a useful diagnostic tool to guide the improvement of corporate governance standards. For Nat Re’s foreign investors, the Scorecard’s methodology, adopted by companies across six ASEAN member nations, provides comparable information to form part of their investment decision-making process. Nat Re provides life and non-life reinsurance capacity, and in relation to this offers consultancy, technical, and advisory services to its clients—the direct insurers in emerging markets. Its services allow direct insurers to better manage their retention and capital, maximize their net premiums given their risk appetites, and execute their roadmaps to competitiveness. Source: asiainsurancereview.com

Specialist insurer, Beazley has received in-principle approval from Lloyd's to establish Syndicate 4321 from 1 January 2022. Once fully approved, the syndicate will focus exclusively on offering additional capacity to businesses that perform well against ESG metrics. Syndicate 4321, established under the Lloyd’s Syndicate In A Box (SIAB) framework, will operate a consortium arrangement led by Syndicates 623/2623. Eligible clients that can meet the standards of the ESG rating scoring criteria will be able to access additional capacity from Syndicate 4321. Syndicate 4321 will underwrite on a multi-line basis, to ensure diversification and balance. In the initial phase the syndicate will accept, D&O, healthcare, financial institutions, London market US cyber, property, marine hull, marine cargo and aviation business. All premiums received by Syndicate 4321 will be invested responsibly, in line with Beazley’s Responsible Investment Strategy. Mr Adrian Cox, Beazley CEO, said: “By creating the first specialist ESG syndicate at Lloyd’s, Beazley is taking an early step in delivering our commitment to embed ESG across our organisation, including our underwriting. Beazley has a track record of creating innovative underwriting vehicles and Syndicate 4321 delivers this to clients that have already achieved ESG standards.” Mr Will Roscoe, head of the Market Facilities Division who will lead the new syndicate, added, “Syndicate 4321 is an innovative and tangible way to support those businesses that invest in ESG by offering additional capacity. Evidence demonstrates that businesses with high ESG ratings are likely to have a lower risk profile and we are looking forward to building long-term partnerships with clients that, like us, value doing the right thing.” Source: asiainsurancereview.com

Mobile wallet company PayMaya Philippines has partnered with international InsurTech firm bolttech to offer "sachet-sized" insurance products and services tailored for the country's young and underserved market. The products are under “PayMaya Protect,” which is powered by the insurance exchange platform of bolttech. It may be accessed through the PayMaya app. The insurance cover is offered in partnership with underwriter Pioneer Insurance & Surety Corp., covering expenses for dengue, COVID-19, as well as permanent total disability. Health coverage products may be availed in bundles for minimum coverage of three months. “Our initial offers for health insurance and device protection are very relevant now, especially among our younger customers seeking better ways to protect what matters most to them,” PayMaya Philippines President Shailesh Baidwan said. PayMaya and bolttech will also offer Mobile Protect which will cover mobile device services for cracked screens, water damage, and such incidents for devices. Consumers may purchase the package monthly. PayMaya is a unit of Voyager Innovations, which is the digital arm of the telecoms and Internet giant PLDT. Source: asiainsurancereview.com

During this time of the year in 1998, one of the strongest typhoons to ever hit the Philippines swept the central area of the country. Having initiated landslides and displacing many Filipinos, Typhoon Babs, locally known as Typhoon Loleng, made landfall. Photo courtesy of Typhoon 2000 With strong winds at a speed of 160 mph, Loleng caused major outage in Catanduanes. Crops were also damaged and destroyed, with approximately 220,000 tonnes of rice rendered wasted and unusable. More than 400,000 houses were destroyed, leaving almost 30,000 citizens displaced. The total damage in pesos is around an estimate of Php 6.7 billion. Photo courtesy of AP Archives Around 80 percent of the buildings in Virac were also destroyed, and roofs flew everything. Casualties were tallied at 300. The preparations of the country then were caught slightly offguard. The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAG-ASA) first issued warnings for both the Luzon and the Visayas, with Manila taking a direct hit. However, Loleng slighty shifted its course, and continued to go northern, where regions would suffer most. Photo courtesy of AP Archives Many residents stayed inside their vehicles when the typhoon struck. Ferries and flights were also cancelled. Aside from the downpour and the heavy waters, the winds were the most problematic of all. The catastrophe of Typhoon Babs, or Typhoon Loleng is testament that although the technology we have can predict and prevent the maximum possible casualties and damage, our on-ground foundation of risk preparedness will consistently be put to test. As responsible agents of insurance and disaster preparedness, may we continue to come up and provide solutions to better arm and prepare the Filipino for the worse typhoons to come. Sources: https://mndaily.com/212974/uncategorized/typhoon-babs-sweeps-across-philippines-toward-manila/ https://www.wikiwand.com/en/Typhoon_Babs_(1998)?fbclid=IwAR1ezQ8RumTtVb-7kpKMpaBNM73k1-1EHB4mlMqs2rNJEUw14pwM39-OKiA https://dbpedia.org/page/Typhoon_Babs_(1998)

The Philippines considers 2013 as an unfortunate year to remember - it was the year when Super Typhoon Haiyan, locally known as Super Typhoon Yolanda, struck and wreaked havoc in the Visayas group of islands. However, approximately three weeks before this typhoon tragedy, a silent, yet powerful memory also resurfaces - the deadly Bohol earthquake of October 15. Image courtesy of CNN At around 8:12 in the morning, an earthquake with a magnitude of 7.2 hit the Visayas region, mainly the areas of Bohol and Cebu. According to the official reports of the Philippine National Disaster Risk Reduction and Management Council (NDRRMC), there were 222 casualties and 976 people were injured. After the 1990 Luzon earthquake which rocked Central Luzon and the Cordillera Administrative Region (CAR), the 2013 Bohol earthquake came in as the next deadliest quake in 23 years. October 15, 2013 was a national holiday, as it was a day of observance of the Muslim Feast, Eid’l Adha. Fishing ports were seen to collapse, and structures inside markets crumbled. Many old infrastructures were unable to withstand the tremble, and numerous bridges, government buildings, and heritage churches also suffered. An estimated damage amounting to Php 2.2 billion was reported, and 348,000 families were declared displaced. Image courtesy of United Nations Originally, the ground shock was reportedly triggered by the East Bohol Fault. However, the Philippine Institute of Volcanology and Seismology (PHIVOLCS) amended that according to the pattern of the aftershocks, the quake – tectonic in nature – was triggered by a previously undiscovered fault line, which is presently named as the North Bohol Fault. Major power outages were declared in the region, and most of the health facilities needed immediate repair to accommodate the casualties. Three weeks later, then, Super Typhoon Haiyan, or Yolanda, struck. Image courtesy of ABC News These unfortunate circumstances and devastating surprises of our Earth are, of course, unforeseen and most of the time unpredicted. These are sudden and in an instant – so quick and sensitive to matters of life and death. Similar to our learnings of the COVID-19 pandemic, may we not forget the disasters we have encountered in the past. May we all direct our efforts into providing better policies and programs that may lessen possible consequences or casualties, as we work towards a future that is with lesser risks and assured protection. SOURCES: http://edition.cnn.com/2013/10/14/world/asia/philippines-earthquake/index.html https://www.csmonitor.com/World/Latest-News-Wires/2013/1015/Philippines-earthquake-Did-Muslim-holiday-save-lives https://committees.jsce.or.jp/disaster/system/files/FSID28_Garciano_DisasterMitigation.pdf https://www.who.int/philippines/news/feature-stories/detail/bohol-earthquake-one-year-on

Pleased to announce that the #NetZeroInsurance Alliance #NZIA convened by UN Environment Programme’s Principles for Sustainable Insurance #PSI has expanded its membership, announcing 5 new members from #Africa, #Asia and #Europe In the run up to the COP26 - UN Climate Change Conference as part of its efforts to build a global alliance. The first NZIA member in Africa is ICEA Lion Group (Kenya), a leading East African insurer, while Shinhan Life Insurance Co. Ltd. (Republic of Korea), one of the largest Korean life insurers, is the first NZIA member in Asia. Meanwhile, the NZIA continues to expand in Europe with three new members: American Hellenic Hull Insurance Company Ltd. (Cyprus), a leading marine insurer; Hannover Re (Germany), the world’s third largest reinsurer; and NN Group (The Netherlands), one of the largest Dutch insurers. It is expected that the NZIA membership will continue to grow across all regions en route to and after COP26. All NZIA members have committed to transition their #insurance and #reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050. They will individually set #sciencebased intermediate targets every five years and independently report on their progress publicly and annually. A company that applies to join the NZIA needs to provide short-term steps that it will take to work towards immediate #decarbonisation of its insurance and reinsurance underwriting portfolios. Furthermore, the NZIA has been accredited by the UN's #RacetoZero campaign, whose criteria requires companies to use science-based guidelines to reach net-zero emissions, cover all emission scopes, include 2030 interim target setting, and commit to transparent reporting and accounting. By meeting the UN Race to Zero criteria, the NZIA also becomes part of the Glasgow Financial Alliance for Net Zero #GFANZ. The NZIA was launched at the #G20 Climate Summit in Venice last July by 8 leading global insurers and reinsurers as its founding members: AXA (France) (NZIA Chair), Allianz (Germany), Aviva (UK), Generali (Italy), Munich Re (Germany), SCOR (France), Swiss Re (Switzerland), and Zurich Insurance Company Ltd (Switzerland). These insurers are building on their climate leadership as investors through the UN-convened Net-Zero Asset Owner Alliance #NZAOA. They are therefore demonstrating the key role of the insurance industry as #riskmanagers, #insurers and #investors in supporting the transition to a net-zero economy. Further announcements to drive climate action will be made by the PSI soon as part of its COP26 plans. Read the global announcement here.

Happening this October 13, 2021 (Wednesday) at 9:30AM to 11:00AM. Check for the Concept Note and Program Flow below. To register please click on this link: https://forms.office.com/r/27x1bgCDHF or scan the QR code in the poster.

Typhoon Chanthu (locally Kiko), the 14th named storm of the 2021 Pacific typhoon season, has caused agricultural damages as it moved over the northern edge of Luzon. It made one landfall within the PAR which occurred in the vicinity of Batan and Sabtang Islands in Batanes Province on Sep 11, 2021, leaving no casualties and a total of Php 37.35M worth of reported damages entirely pertaining to agriculture. (Sources: PAGASA, NDRRMC, as at 17 September 2021)