Nonlife insurance firms bracing for huge claims

MANILA, Philippines—Nonlife insurance firms belonging to the Philippine Insurers and Reinsurers Association (Pira) are bracing for “huge claims” due to Typhoon “Ruby,” even as the total loss would not be as severe as that caused by Supertyphoon “Yolanda” last year.

“The year 2014 would have been a very good year for non-life insurance companies. That is, if Typhoon ‘Ruby’ did not enter the picture,” Pira said in a statement on Monday.

“Though this may not be exactly like ‘Yolanda,’ still we are preparing for huge claims,” Pira chair Emmanuel R. Que said.

Last year, non-life companies paid P15 billion in insured losses mainly due to “Yolanda,” which flattened central Philippines.

“Our biggest worry is if [‘Ruby’] hits Metro Manila, which we hope does not happen. If it does, then what could have been a good year for us will turn into a bad year just like last year,” Que said.

Weather forecasts expect “Ruby” to batter Metro Manila Monday night.

As “Ruby” has already passed through the Visayas and inflicted “heavy” damage to properties in the region, non-life insurers are now preparing for major claims, Pira said.

Que, however, said that “it is too early to come up with estimates as to how much will be the insured losses for Typhoon ‘Ruby.’”

“We will know in the coming days once we have received actual reports from the ground,” Que said.

In 2013, the net income of the non-life insurance sector declined to P3.163 billion from the previous year’s P3.272 billion due to a number of natural disasters and calamities that struck the country, including typhoons and earthquakes.

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