A lawmaker on Thursday filed a bill seeking to establish a national flood insurance program of the government, as response to the aggravating socio-economic challenges confronted by ordinary Filipinos living in highly vulnerable areas.
4Ps Partylist Rep. JC Abalos filed House Bill (HB) No. 5409 said that despite the country’s recurring exposure to flooding, exacerbated by climate change, questionable infrastructure, and rapid urbanization-there is currently no dedicated, nationwide flood insurance program.
‘Victims of flooding often rely on post-disaster support mechanisms. Commercial property insurance could be unaffordable for low-income households and small businesses. This situation perpetuates a cycle of loss, poverty, and slow recovery for affected communities,’ he said.
‘It is very timely to strengthen the government’s flood-risk protection and mitigation efforts. We need to add proactive measures and institutional responses such as the implementation of a National Flood Insurance Program, in order to provide financial protection to the underserved population of our country situated in communities at risk of flood losses,’ Abalos added.
Abalos also noted that recent revelations of corruption in flood-control projects highlight the need for institutional and people-centered mechanisms that directly benefit affected citizens.
‘Over a trillion has been poured into flood-control projects, yet many communities remain underwater after every storm.’ Abalos said.
‘A National Flood Insurance Program ensures that people are not left defenseless. It empowers households to recover and rebuild.’ he added.
Abalos explained that a flood insurance system will serve as both a social safety net and a transparency mechanism, since verified insurance claims and payout data can also serve as independent indicators of where flood damage actually occurs, and whether government projects are working as intended.
In an article by the Senate Economic Planning Office (SEPO), it briefly discussed the economic impact of flooding and climate related disasters. SEPO cited an estimate of 25% or 10.66 million members of the Filipino workforce relies on climate-sensitive agriculture and fisheries. However, due to frequent typhoons and extreme weather events perpetuates a cycle of disaster and poverty, keeping farmers and fisherfolk sectors among the poorest in the country. The said planning office further noted that the Philippines incurred PhP 911 billion pesos in economic losses due to extreme weather events and natural disasters from 2000 to 2023.
Last September, the World Risk Report 2025 was released by the Ruhr University in Bochum Germany wherein they discussed the disaster risk for 193 countries worldwide, covering all member states of the United Nations and over 99 percent of the global population. In the said report, the Philippines ranks number 1 among the most disaster-prone country in the world due to high exposure to floods, typhoons, and other natural hazards.