Germany to help PH create climate risk insurance products for poor
The German government is partnering with the Philippine government and private companies to develop viable climate change insurance products for the poorest of the poor and for micro, small, and medium enterprises (MSMEs).
This was according to Antonis Malagardis, program director of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
GIZ is a state-run organization that will help implement the project on behalf of the German Federal Ministry for Economic Cooperation and Development.
As part of the deal, GIZ will work with several government agencies and the business sector to develop policy and regulatory reforms, viable business models, the market, and digital tools for climate risk insurance in the country.
According to Philippine Insurance Commissioner Atty. Dennis B. Funa, the country experiences a total of USD3.5 billion in damages yearly due to typhoons and earthquakes.
In 2009, MSMEs in the country lost around USD4.4 billion from floods caused by typhoons Ondoy and Pepeng, reported the Philippine Institute of Development Studies.
Meanwhile, a World Bank report said the adverse impacts of natural disasters are among the constraints to the Philippines’ achievement of faster poverty reduction.
The Bank then recommended management of disaster risks and protection of the vulnerable as one of six policy directions by which the current administration can hasten poverty reduction.