Highlights 

  • Parametric insurance will safeguard 14,200 small-scale fishers against adverse weather income loss. 
  • Pilot coverage supported by the Governments of the Philippines, Canada, and UK. 
  • Weather-index-based insurance provides timely, direct compensation for missed fishing days. 

Willis, a WTW business (NASDAQ:WTW), in collaboration with global conservation organization Rare, the Philippine Bureau of Fisheries and Aquatic Resources, and the Philippine Crop Insurance Corporation, has launched the country’s first parametric insurance program for small-scale fishers. The pilot is designed to protect the livelihoods of 14,200 fishers across 24 coastal municipalities in the Philippines. 

The initiative is supported by the Ocean Risk and Resilience Action Alliance, with funding from the Government of Canada and the UK Government’s Blue Planet Fund. The program aims to mitigate income losses caused by weather events that prevent safe nearshore fishing. 

Policy Implementation and Coverage 

BFAR acts as the policyholder for the pilot, providing coverage to registered fishers who adhere to sustainable fishing practices. Eligible participants can receive up to USD 100 per policy cycle when weather conditions—measured by wind speed, sea state, and rainfall—restrict safe fishing.  

Roy Ortega of BFAR, who leads the Technical Working Group on Parametric Insurance, said, “This is not just insurance, it is an investment in our fishers. We’re protecting those who protect our seas.” 

Operational Mechanism and Risk Transfer 

The parametric risk transfer is provided by The Natural Disaster Fund, a public-private partnership backed by the UK and German Governments and Hannover Re, and managed by Global Parametrics Limited, a subsidiary of CelsiusPro Group. The product is designed to be affordable, scalable, and provide predictable financial support when adverse weather prevents fishing activity. 

Supporting Statements 

Brett Jenks, CEO of Rare, said, “Bad weather can cause serious hardship for fishing households. This pilot insures people rather than assets, reducing financial pressure and fishing stress while strengthening coastal communities.” 

Chip Cunliffe, Senior Director of Innovation at ORRAA, stated, “This partnership represents a vital step in developing market-ready solutions to protect income and resilience of climate-vulnerable coastal communities.” 

Israel Q. De La Cruz of PCIC commented, “This is an important first for PCIC, offering a faster, data-triggered option to complement existing coverage for fishers.” 

About the Partners 

Rare is a global conservation organization promoting community-driven solutions that benefit people and nature. ORRAA is a multi-sector alliance connecting finance, insurance, and governments to create scalable resilience solutions. Willis (NASDAQ:WTW) provides data-driven risk, capital, and people management solutions across 140 countries.