THE GOVERNMENT has partnered with global conservation organization Rare and solutions company Willis to launch a pioneering parametric insurance program to protect subsistence fisherfolk affected by extreme weather.
The insurance program aims to cover 14,200 fisherfolk in 24 municipalities. The payout is $100 per policy cycle to compensate for income lost when rough seas, high winds, or heavy rainfall prevent fishing activities.
Parametric insurance pays out set amounts when certain pre-defined trigger events occur. It is not based on the value of actual damage incurred.
The project is supported by the Ocean Risk and Resilience Action Alliance and funding from the governments of Canada and the UK.
The Bureau of Fisheries and Aquatic Resources, which will serve as the policyholder for the pilot program, will provide coverage to registered fisherfolk who commit to sustainable practices.
The parametric product uses a weather index that measures wind speed, sea state, and rainfall to automatically trigger payouts when conditions exceed thresholds.
The coverage is backed by the Natural Disaster Fund, a public-private partnership between the UK and German governments.
“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,” Christopher Au, head of Willis’s Asia-Pacific Climate Risk Centre, was quoted as saying in a statement.
Rare CEO Brett Jenks said the pilot adapts parametric insurance, traditionally used for assets, to protect people directly, easing financial strain on fisherfolk and promoting ecosystem resilience.
The Philippine Crop Insurance Corp., which is also involved in the project, said the pilot results will be evaluated for possible national rollout. — Vonn Andrei E. Villamiel