The Philippines has launched its first parametric insurance programme for small-scale fishers, a pilot initiative aimed at protecting livelihoods from income losses caused by bad weather.

The project is a collaboration between the Bureau of Fisheries and Aquatic Resources (BFAR), the Philippine Crop Insurance Corporation (PCIC), conservation group Rare, and Willis, a WTW business.

The Ocean Risk and Resilience Action Alliance (ORRAA), with funding from the Governments of Canada and the United Kingdom, supports the initiative.

Under the pilot, BFAR will act as the policyholder, offering coverage to 14,200 small-scale fishers across 24 coastal municipalities. The insurance will provide payouts of up to US$100 per policy cycle to offset income losses when adverse weather prevents fishing.

BFAR has allocated part of its budget to pay the premiums, linking the coverage to its fisher registration programme and sustainable fishing commitments.

“With over 1.9 million registered small-scale fishers relying on the nearshore for their livelihoods, the impacts of climate change, such as high winds, rough seas and heavy rainfall, pose increasing risks to their safety and income,” said Dr. Christopher Au, Head of APAC Climate Risk Centre at Willis.

The Natural Disaster Fund, a public-private partnership between the UK and German governments, backs the insurance, with support from Hannover Re and management by Global Parametrics.

The fund provides parametric risk transfer capacity by comparing a five-day weather index against historical data to enable quick financial support.

Source - https://fintechnews.ph