The Japan International Cooperation Agency (JICA) and the Government Service Insurance System (GSIS) have commenced a Technical Cooperation Project (TCP) to bolster the financial resilience of public assets in the Philippines against natural disaster risks.
This project began with the formation of a Joint Coordinating Committee (JCC) and the deployment of Japanese experts, officially launching on May 24 in Pasay City.
Disaster Risk Financing was added as a regular agenda item at last year’s ASEAN+3 meeting under the finance track, underscoring its significance in the region.
In alignment with the Disaster Risk Financing Initiative, JICA has started its inaugural cooperation project in the Philippines, focusing on insurance solutions, financial product exploration, knowledge exchange, and technical solution development.
“Through this project, we aim to leverage Japan’s knowledge and experience as a disaster-prone country, like the Philippines, to establish reasonable insurance premiums that account for the vulnerability of public assets to disaster risk. This will ultimately promote pre-disaster investment as well, which JICA has extensively collaborated on with the Government of the Philippines,” said JICA director Kido Takehiro.
Over the next three years, the project will work to improve GSIS’s capability to reference replacement values and ensure the adequacy of insurance coverage. It also aims to reduce potential damage and financial losses, facilitating quicker recovery times.
The JCC, which includes officials and staff from GSIS, the Department of Finance (DOF), the Bureau of Treasury (BTr), and the JICA expert team, will oversee efforts in determining replacement costs, calculating risk-based premium rates, enhancing underwriting capacity, and increasing public awareness of insurance services.
In the initial phase, spanning three months, GSIS and the JICA expert team will develop a detailed design survey to outline specific activities and expected outcomes for the project, aligning with the DOF’s National Disaster Risk Financing and Insurance Strategy and the BTr's ongoing development of the National Asset Registry System.
JICA reiterated its commitment to enhancing GSIS’s capacity development, which could lead to increased insurance coverage for public assets, protecting the Philippines’ critical investments and developmental achievements from disaster risks.
The Philippines is recognised as one of the most disaster-vulnerable countries worldwide. It will host the next Asia-Pacific Ministerial Conference on Disaster Risk Reduction (APMCDRR) in collaboration with the United Nations Office for Disaster Risk Reduction (UNDRR) in October in Manila.
Japan and the Philippines aim to ensure a more resilient and secure future for the Filipino people through continued cooperation and collaboration.
