The Bureau of the Treasury (BTr) said it rolled out an insurance program to shield critical government assets from the financial blowback of typhoons, earthquakes and other calamities.
The 2024 pilot program of the National Insurance Indemnity Program (NIIP) covers 132,862 Department of Education (DepEd) school buildings nationwide with a combined value of over P800 billion. The BTr covered the premium for the pilot program using the excess payout it received from the Catastrophe Bond. The insurance policy commences on Jan. 1, 2024.
“We are glad to start the year strong with one of our flagship programs – the NIIP, finally being placed. The program will provide financial protection for our schools in the event of disasters,” Treasury officer-in-charge Sharon Almanza said.
“We are also grateful to the GSIS who continues to be our partner in finding appropriate solutions to protect government assets against unforeseen losses,” she said.
“I commend the BTr for successfully implementing the NIIP. Safeguarding our national assets is crucial to ensure the safety and readiness of the projects delivered by this administration for the Filipino people. This is just one of the many immediate actions we are taking to bolster our country’s financial resilience,” Finance Secretary Benjamin Diokno said.
“We are starting the year strong and well-prepared as we expect the realization of many more high-impact infrastructure projects under the leadership of President Ferdinand R. Marcos Jr.,” he said.
Insured by the Government Service Insurance System (GSIS), the NIIP aims to cushion government finances from unexpected losses arising from disaster events such as typhoons and earthquakes and ensure access to funding post-disaster for reconstruction.
Unlike the often single-asset insurance purchase, a portfolio approach was taken to spread out the risk and maximize the available premium budget.
“I am excited to see this program finally come to fruition. This is just one of the many programs the BTr implements to enhance our resilience against disasters,” said Monetary Board member Rosalia De Leon who led the development of the program during her tenure as Treasurer.
“Our vulnerability to natural disasters makes it imperative for us to act now and implement solutions that would help us become more resilient and recover faster,” she said.