The government of the Philippines is aiming to secure enhanced climate-disaster risk financing and insurance capacity, with parametric structures likely to play a significant role, while Global Shield financing vehicles are expected to help fund the initiative.
The Philippines Department of Finance (DOF) is collaborating with the Global Shield Secretariat and Institute for Climate and Sustainable Cities (ICSC) to establish the new disaster risk finance and insurance mechanisms.
The Philippines has a track-record for embracing responsive and modern catastrophe and weather risk transfer solutions, from parametric triggered instruments, to indemnity reinsurance, and of course catastrophe bonds.
The Department of Finance is in the process of development a Climate Finance Strategy and updating its Disaster Risk Finance and Insurance (DRFI) Strategy, which drive the risk transfer, insurance and reinsurance purchases of the government in many cases.
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