New insurance products for terrorist attacks

MANILA, Philippines - Amid the rising threat of terrorist attacks, the Insurance Commission (IC) called on the local insurance industry yesterday to develop new products that would protect Filipinos against losses and damages resulting from these acts.

In a statement, Insurance Commissioner Dennis Funa said there is a need to provide insurance coverage against terrorist attacks, particularly in the Philippines, where risks from terror attacks are high.

“In the light of the continuing risk of terrorist attacks, it is important that the public is protected against losses and damages resulting from terrorist attacks,” Funa said.

“Considering that the Philippines is considered a high risk country in terms of likelihood of terrorism attack, we encourage insurance companies to develop life and non-life insurance products which specifically covers losses and damages resulting from acts of terrorism,” he said.

According to Funa, the demand for terrorism insurance worldwide has “grown exponentially” after the 9/11 attack.

However, he said the Philippines continues to lag in this area, with only FWD Life Insurance Corp. currently offering this type of insurance in the country.

“While existing insurance products specifically exclude death and disability claims arising from terrorist attacks, FWD developed a product which specifically covers this risk,” he said.

Funa said the FWD’s terrorism insurance product, the first of its kind in the country, covers death or serious disability, such as the total and irreversible loss of sight on both eyes or hearing on both ears, and the total and permanent inability to use hands and feet.