BIZ BUZZ: PH insurance costs rising
Los Angeles may be a vast ocean away from the Philippines, but the effects of the devastating fires that recently hit the City of Angels are nevertheless still keenly felt here.
Biz Buzz sources say that insurance costs have risen— with some companies jacking up their premiums by as much as 30 percent for 2025—because of the higher perceived risk from natural calamities.
The way that these companies see it, what happened to Los Angeles can easily happen here, too. Perhaps the devastation will not necessarily come from fire, but from other natural disasters.
The Philippines already owns the title of being the most vulnerable country to natural disasters owing to its location in the typhoon belt and the Pacific ring of fire.
It thus stands to reason that with climate change magnifying the frequency and impact of these natural disasters, cost of coverage will naturally go up. And that is if the insurance companies will even decide to cover the risk at all.
So if they do, don’t be surprised if you receive a notice from your insurance company that policies covering risks such as fire, flood and earthquake will be more expensive this year, and likely even more expensive in the years to come.
