By Tracy Cabrera

GSIS, Pasay City — In a bid to standardize estimation of the replacement cost of public assets insured by GSIS, the Government Service Insurance System (GSIS) and the Japan International Cooperation Agency (JICA) has moved forward with their joint venture initiative to strengthen the valuation and risk assessment of government assets.

The partnership was forged during the 2nd Joint Coordinating Committee Meeting of the GSIS–JICA Technical Cooperation Project which focused on creating a standardized and science-based method for evaluating public assets and improving the accuracy of insurance coverage and risk-based premiums for government properties nationwide.

According to GSIS president and general manager Arnulfo 'Wick' Veloso, the initiative will address the long-standing challenge of establishing a reliable baseline for valuing public assets and assessing the risks they often face.

“Many agencies still have incomplete or outdated property records. This project will help resolve this concern,” Veloso pointed out.

He added that since GSIS insures several thousands of government assets across the country that include schools, hospitals, bridges, municipal halls and other important public infrastructure, an ccurate valuation is critical in ensuring appropriate insurance coverage and faster recovery of government services after disasters.

On the other hand JICA senior representative Nobuhiko Aoki emphasized the broader significance of the collaboration which most importantly will support the country's Disaster Risk Financing Strategy by helping ensure sufficient and readily accessible post-disaster financing.

“As the primary insurer of public assets, GSIS plays a critical role, especially as climate-related disasters continue to pose growing fiscal and macroeconomic risks across the region. Through this joint venture partnership, there will be much needed support in the integration of hazard information from the GeoRiskPH platform, following a Memorandum of Agreement signed between GSIS and the Philippine Institute of Volcanology and Seismology (PHIVOLCS),” Aoki stressed.

Veloso noted that the platform will ensure the provision of nationwide data on earthquakes, volcanic activity, landslides, liquefaction and other natural hazards and here, he asserted, that by combining scientific hazard data with standardized valuation tools, GSIS will be able strengthen its underwriting process and ensure that insurance premiums reflect actual disaster risks.

“The initiative is aligned with the development of the General Insurance Information System (GIIS), the new digital platform that will support GSIS general insurance operations. Once integrated, the system is expected to enable automated asset valuation, more consistent underwriting and improved analytics for disaster risk assessment,” he concluded.