Philippine gov’t launches national insurance indemnity program

The Philippine government, through the Bureau of Treasury (BTr), has launched the National Insurance Indemnity Program (NIIP) that aims to provide cover for what it describes as strategically important government assets.

These assets include school buildings, the Department of Finance said.

Finance Secretary Benjamin E. Diokno said the program is just one of the many immediate actions the government is taking to bolster the country’s financial resilience.

“Safeguarding our national assets is crucial to ensure the safety and readiness of the projects delivered by this administration for the Filipino people. 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.,” Diokno said in a statement on Monday.

The NIIP aims to assist the government in financing the recovery from unexpected losses due to disasters such as typhoons and earthquakes. It also aims to ensure access to funding post-disaster for reconstruction.

The insurance was arranged by the Government Service Insurance System (GSIS), which took a portfolio approach to mitigate risk and maximize the available funding for premiums.

Monetary Board Member and former National Treasurer Rosalia V. de Leon said the NIIP is just one of the programs that the BTr implements to enhance the country’s resilience against disasters.

“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.

Ms. De Leon also led the development of the NIIP during her term as Treasurer.

“We are glad to start the year strong with one of our flagship programs — the NIIP, finally in place. The program will provide financial protection for our schools in the event of disasters. We are also grateful to the GSIS who continues to be our partner in finding appropriate solutions to protect government assets against unforeseen losses,” BTr Officer-in-Charge Sharon P. Almanza said.

The 2024 pilot program of the NIIP covers 132,862 Department of Education school buildings nationwide.

The GSIS previously set aside P843.11 billion to provide fire, lightning, and natural catastrophe insurance cover for public school buildings for one year starting Jan. 1, 2024. – InsuranceNewsAsia.com