CLIMBS, an insurance cooperative based in the Philippines, currently provides around USD 45 million in insurance coverage to 6.6 million insured individuals. The cooperative has the goal of expanding its reach and insuring 20 million lives by 2024. As part of its strategy, CLIMBS is incorporating environmental, social, and governance (ESG) principles into its products and activities. One notable product is parametric insurance, which helps farmers protect themselves against the frequent typhoons that impact the country.
The Philippines is located in the Ring of Fire, making it prone to natural disasters such as typhoons. With an average of 26 typhoons per year, the country faces significant challenges in dealing with their aftermath. CLIMBS recognises the need to provide support to farmers who often bear the brunt of these typhoons. Parametric insurance has become a vital tool in addressing this issue.
Parametric insurance offers cover based on predetermined triggers, such as wind speed or rainfall levels, rather than indemnifying specific losses. By utilising historical and real-time data, CLIMBS can efficiently assess and process claims, enabling it to provide timely assistance to farmers. This insurance solution aims to help farmers recover quickly from the impact of typhoons, reduce the financial burden, and promote climate-smart agriculture practices.
CLIMBS has embraced ESG principles to align its products and activities with sustainability goals. The cooperative’s Weather Protect Insurance cover incorporates ESG into its framework. CLIMBS promotes climate-smart agriculture by advising farmers on suitable crop areas, livelihood mapping, crop calendars, and seasonal agriculture. By combining insurance with agricultural support, CLIMBS aims to become a resource centre for cooperatives in the Philippines.
Furthermore, CLIMBS has organised the Cooperative Climate Summit, a biennial event aimed at discussing ESG-related initiatives. Through this summit, CLIMBS encourages cooperation among its 4,000 member cooperatives to lobby for institutional support, such as a loss and compensation fund. The cooperative’s aim is to ensure the availability of affordable premiums and financial assistance for farmers, thus addressing issues related to food security.
CLIMBS actively engages in advocacy efforts and continuous lobbying for climate action. It collaborates with government institutions like the Climate Change Commission and the Department of Agriculture to raise awareness and seek support for their programs. CLIMBS believes in the power of collective action and aims to scale up parametric insurance to benefit a larger number of cooperatives and farmers.
As a cooperative organisation, CLIMBS allocates 3% of its net income to community development funds, which are used for various social responsibility initiatives. Additionally, CLIMBS has established “KoopSkwela,” a mobile learning hub that addresses education challenges faced by children in underserved communities. Through executive education programmes, CLIMBS also focuses on developing new leaders and attracting younger members to ensure the longevity and sustainability of the cooperative movement.
CLIMBS continues to innovate and expand its product offerings to meet the evolving needs of farmers and promote sustainability. It aims to launch farm insurance, covering equipment, household assets, and machinery, which will further strengthen its support for the agricultural sector. By advocating for climate action, incorporating ESG principles, and fostering social responsibility, CLIMBS strives to make a lasting positive impact on the lives of Filipino farmers.
