The Philippines Government is in talks with the World Bank to develop an insurance plan that will respond better in the aftermath of catastrophes.

Treasurer Rosalia de Leon says a new model will allow the Government to “evaluate options for risk transfers and insurance that will reduce the fiscal burden of relief and reconstruction efforts”.

Finance Secretary Cesar Purisima says insurance mechanisms, including mandatory disaster cover, must be developed further in the wake of Super Typhoon Haiyan last month.

The World Bank has offered a $US1 billion ($1.1 billion) assistance package to the Philippines and its disaster specialists are helping the Government assess damages and identify priority areas for immediate recovery and reconstruction.

“The World Bank Group is also looking at restructuring existing investment projects to support reconstruction of affected communities,” the bank said.

Further assistance will come through investment or results-based operations to support medium and long-term reconstruction.

Mr Purisima says the Philippines must modify infrastructure design and location to cope better with climate change.

“We also need to ensure agriculture becomes less disaster-prone through sustainable insurance products.

“There is a need to build and develop insurance mechanisms to help in the management of risks, to help investors and individuals alike insure themselves against risks such as climate change.”

Mr Purisima, who oversees the nation’s insurance commission, says mechanisms should include mandatory disaster insurance with premiums based on carbon footprint.

Infrastructure insurance may also be explored.