Philippines Parametric Catastrophe Risk Insurance Program: Frequently Asked Questions

This insurance program is part of the government’s overall disaster risk finance strategy, which seeks to strengthen national and local capacity to respond immediately and effectively to natural disasters. It provides the last line of defense against severe natural disasters and complements other funding sources that protect against less severe natural disasters.

Other financial protection mechanisms already in place include the Disaster Risk Reduction and Management (DRRM) Funds at the national and local level funded from the national budget and the World Bank Second Development Policy Loan with a Catastrophe-Deferred Drawdown Option (CAT-DDO2), which provides US$500 million of standby financing.