In a landmark step towards climate resilience, more than 14,200 small-scale fishers across 24 coastal municipalities in the Philippines are set to receive protection under the country’s first-ever parametric insurance scheme tailored specifically for small-scale fishermen. This new initiative aims to cushion vulnerable fishing families from income disruptions caused by increasingly unpredictable and dangerous weather conditions that make nearshore fishing unsafe.
The programme, launched by the Government of the Philippines through the Bureau of Fisheries and Aquatic Resources (BFAR) and the Philippine Crop Insurance Corporation (PCIC), has been developed in partnership with international conservation organisation Rare and global risk advisory firm Willis. The pilot 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.
With climate-related weather shifts intensifying, securing the livelihoods of small-scale fishers has become a national priority. BFAR will act as the policyholder and will offer this insurance as an added benefit for fishers who are registered and committed to engaging in sustainable fishing methods. The agency has allocated part of its operational budget to cover insurance premiums for the pilot phase, signalling strong government support for modern, climate-focused risk solutions. Each fisher can receive up to 100 US dollars per cycle when weather conditions prevent them from going to sea.
Roy Ortega, lead of BFAR’s technical working group, emphasised the significance of the initiative, stating, “This is not just insurance, it is an investment in our fishers. We are protecting those who protect our seas.”
The solution employs a sophisticated weather index based on wind speed, rainfall, and sea state, allowing payouts to be automatically triggered when conditions cross unsafe thresholds. Dr Christopher Au, Head of the APAC Climate Risk Centre at Willis, noted that this enables “timely and direct compensation to fishers when fishing days are lost.”
With more than 1.9 million registered small-scale fishers in the Philippines relying on nearshore waters for their primary income, the stakes are high. Climate change is bringing stronger winds, rougher seas, and heavier rainfall, all of which heighten risks for coastal fishing families.
The Natural Disaster Fund—a public–private initiative involving the UK and German Governments, supported by Hannover Re and operated by Global Parametrics Limited—provides the parametric risk capacity underpinning the scheme. This ensures financial stability and predictability for payout mechanisms.
Rare’s CEO, Brett Jenks, highlighted the broader impact, saying: “Bad weather can cause serious hardship for fishing households. This pilot applies a proven product—parametric insurance—to a new context by insuring people rather than assets. The outcome will be less financial stress, reduced overfishing, and stronger, more resilient coastal communities.”