Best’s Commentary: Mindanao Earthquake Expected to Impact Philippine Insurers’ Results in Second-Half 2026

SINGAPORE, June 10 (Bernama) -- Due to the catastrophe protection gap in the Philippines, insured losses from damage caused by a recent 7.8-magnitude earthquake in the Mindanao region are expected to be limited and a small fraction of total economic damage, according to a new AM Best commentary.

The Best’s Commentary, “Mindanao Earthquake Expected to Impact Philippine Insurers’ Results in Second-Half 2026,” notes that while the full scope of insured losses remains subject to ongoing assessments and is not yet quantified, AM Best expects that the domestic non-life insurance market will absorb the primary layer of exposure through a risk-sharing programme involving direct policies and the Philippine Catastrophe Insurance Facility (PCIF), which was established to pool domestic catastrophe risk.