This report presents the rationale for and design of a city
government disaster insurance pool in the Philippines. Insurance
pools help governments enhance their financial preparedness for
disasters, focusing on the provision of rapid post-disaster
financing for early recovery. The Philippine City Disaster
Insurance Pool was developed under the guidance of the Department
of Finance as part of the 2015 Disaster Risk Financing and
Insurance Strategy. It utilizes a parametric insurance structure,
basing payouts on the occurrence of earthquakes and typhoons
according to their physical features, rather than actual losses.
General
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