CLIMBS (Philippines) is a life and general insurer which provides protection to many rural Filipinos who are vulnerable to natural disasters. Every year, the Philippines experiences about 20 tropical storms, five of which are very destructive. Many Filipinos are affected, including farmers whose livelihoods are vulnerable and at risk due to natural catastrophes. The Philippine Insurance Commission has allowed non-life insurance companies to provide agricultural insurance independently or in collaboration with any national or international public and private insurers. The need for an effective insurance programme for the agricultural sector has become essential.
As part of the National Agriculture and Fisheries modernisation and industrialisation plan, the Filipino government launched the Kadiwa initiative in September 2019, with the goal of making farmers and fisherfolk more prosperous. Kadiwa is a market system which sells agricultural goods at low prices to help low-income Filipino households. The initiative creates a direct link between farmers,those who catch fish for a living, to local consumers and will guide the trajectory of sector-wide growth over the next decade.
Achieving food security will require new and existing applications of science and technology and innovation across the agricultural sector. CLIMBS has introduced an enhanced Weather Protect Insurance to help those affected by natural disasters cope and to assist cooperatives to manage possible losses brought on by such events. The product was created in partnership with organisations which share similar values from the international sector: The International Cooperative and Mutual Insurance Federation (ICMIF), IBISA Network (Luxembourg, another ICMIF member), the International Center for Tropical Agriculture (CIAT), and Global Parametrics.
The enhanced Weather Protect Insurance is an innovative solution that uses blockchain technology with a unique feature on smart agriculture to help build resilience and sustainability among farmers. The product is in line with the Philippines’ development plan to promote agriculture microinsurance products, increase sector resilience to climate risk and introduce innovative risk transfer mechanisms.
The Sendai Framework for Disaster Risk Reduction 2015-2030 (Sendai Framework) outlines seven clear targets and priorities for disaster risk reduction. The framework has been adapted as natural disasters around the world have increased and their consequences are felt most acutely in countries which are often least equipped to cope with them economically and politically.
Currently, the response to disaster is most often reactive, however, disasters instead need a proactive, comprehensive, preventative and people-centred approach that can foster change from a human perspective. This approach not only benefits those directly affected by the disasters, but also the population at large.
