PIRA initiates disaster research

MANILA, Philippines - The Philippine Insurers and Reinsurers Association (PIRA) is collaborating with three government institutions for disaster research in order to establish a catastrophe (CAT) model for the country. PIRA officials, led by its chairman Emmanuel Que, signed a memorandum of understanding with the Insurance Commission (IC), the University of the Philippines (UP) and the Philippine Institute for Volcanology and Seismology (Phivolcs) to establish a CAT model and a public-private insurance pool facility for the non-life insurance industry. A CAT model is a computer-assisted simulation showing the potential cost of damages to buildings due to disasters such as earthquakes. The model helps determine premiums for property insurance. The parties will conduct research work and parallel studies on earthquake, fire, flood, severe wind and other hazards intended as inputs to the build-up of data for the government’s risk mitigation/assessment and risk reduction management.