Treasury implements disaster insurance program for gov’t assets

Metro Manila (CNN Philippines, January 2) — The Bureau of Treasury (BTr) has started implementing a national insurance program to secure government assets from disaster events and will initially cover 132,862 school buildings.

The bureau said the National Insurance Indemnity Program (NIIP), which is insured by the Government Service Insurance System (GSIS), officially began on Monday as it targets to ensure accessible funding for the reconstruction of facilities from unexpected losses that may be caused by typhoons and earthquakes.

“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 in a statement.

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The BTr said it has covered the initial ₱800-billion insurance value to cover the nationwide school buildings under the Department of Education by using the excess payout from the Catastrophe Bond.

“Unlike the often single-asset insurance purchase, a portfolio approach was taken to spread out the risk and maximize the available premium budget,” the BTr statement read.

Former Treasurer of the Philippines Rosalia de Leon, who led the NIIP during her tenure, and BTr Officer-in-Charge Sharon Almanza said the program would help enhance the country’s resilience against natural disasters.