High exposure to natural disasters fuels Philippines' insurance market

According to Moody's, Philippines' strong exposure to natural disasters associated with economic growth supports the demand for insurance in the archipelago.

The country's location in the Pacific "Ring of Fire", exposes it to about 20 typhoons annually as well as to the volcanic risks and recurring earthquakes.

The Philippine government intends to combat the effect of natural disasters by launching a program worth 10 billion PHP (188 million USD). Supported by State-run insurance structures, this program is supposed to cover the damage related to typhoons and earthquakes.

Growth in insurance premiums is also fueled by investment-related products, with non-life insurance policies experiencing strong commercialization.