The back-to-back weather events last week unleashed a catastrophic onslaught, leaving a devastating path of destruction in their wake and wreaking havoc on properties, infrastructure, and livelihoods.
In addition to Typhoon Carina (Gaemi), the country grappled with enhanced monsoon rains, compounding the storm's impact and exacerbating flooding in Luzon’s low-lying areas, notably in Metro Manila and nearby provinces.
Although Typhoon Carina did not directly hit the country, its "habagat" unleashed torrential rains that triggered widespread flooding, damaging vehicles, residences, and structures, displacing people, and disrupting critical services.
The repercussions on communities have been profound, as residents confront the challenge of rebuilding their lives anew. The loss of homes, livelihoods, and possessions has rendered many vulnerable and in urgent need of support.
The devastation wrought by “Carina” and the augmented monsoon rains underscored again the critical imperative for disaster preparedness and resilience-building initiatives.
Calamity insurance
In the Philippines, situated in the Pacific Ring of Fire and the typhoon belt, natural disasters are a harsh reality of life. From devastating typhoons and earthquakes to volcanic eruptions and landslides, Filipinos are no strangers to the destructive power of nature.
In the face of such calamities, the need for financial protection has never been more apparent. This is where calamity insurance comes into play, offering a safety net for individuals and communities in times of crisis.
Calamity insurance, part of non-life insurance options, provides financial coverage for losses and damages caused by natural disasters. It is designed to help individuals, businesses, and communities recover and rebuild after catastrophic events such as typhoons, earthquakes, floods, and volcanic eruptions.
While no amount of money can fully compensate for the loss of life and property in a disaster, having insurance can significantly ease the financial burden and expedite the recovery process.
Natural disasters are frequent in the country, so the importance of calamity insurance cannot be overstated. With an average of 20 typhoons each year, along with the constant threat of earthquakes and volcanic eruptions, Filipinos are constantly at risk of losing their homes, livelihoods, and even their lives.
Despite the clear benefits of calamity insurance, its uptake in the Philippines remains relatively low.
Low insurance penetration rate
According to the Insurance Commission, a very small percentage is covered by calamity insurance, with many individuals and communities opting to rely on government aid and donations in the aftermath of disasters.
The lack of insurance coverage leaves many vulnerable to financial ruin in the event of a catastrophe, further exacerbating the cycle of poverty and vulnerability. One of the main barriers to greater adoption of calamity insurance is affordability.
Many Filipinos, especially those living in poverty-prone areas, struggle to afford insurance premiums on top of their daily expenses.
Additionally, there is a lack of awareness and understanding about the benefits of insurance, with many perceiving it as an unnecessary expense rather than a vital safety net.
To address these challenges, efforts are being made to promote greater awareness and accessibility of calamity insurance.
Government agencies, insurance companies, and non-governmental organizations are working together to educate the public about the importance of insurance, develop affordable insurance products tailored to the needs of vulnerable communities, and streamline the claims process to ensure timely assistance in the event of a disaster.
As the impacts of climate change continue to exacerbate the frequency and intensity of natural disasters, the need for calamity insurance will only grow more pressing. Investing in insurance not only provides financial protection for individuals and communities but also contributes to building resilience and sustainable recovery in the face of adversity.
‘Acts of God’ come at a price
By recognizing the value of insurance as a tool for risk management and disaster preparedness, Filipinos can better protect themselves and their loved ones from the unpredictable forces of nature.
In a country where “acts of God” come at a price, calamity insurance offers a ray of hope amidst the chaos and destruction. It is a reminder that while we cannot control nature, we can take proactive steps to safeguard our future and build a foundation for resilience.
With the right policies, education, and support, calamity insurance can become a powerful tool for building a more resilient and prepared society.
As the saying goes, “an ounce of prevention is worth a pound of cure,” and investing in calamity insurance is a proactive step toward mitigating the devastating impacts of disasters before they strike.