In a pioneering initiative, the Philippine Government, through the Bureau of Fisheries and Aquatic Resources (BFAR) and the Philippine Crop Insurance Corporation (PCIC), has partnered with the global conservation organisation Rare and Willis, a WTW business, to introduce the country’s first-ever parametric insurance solution for small-scale fishers.
Launched on 11th November 2025, the scheme will provide vital protection to the livelihoods of 14,200 small-scale fishers across 24 coastal municipalities in the Philippines. The move, the first of its kind in the country, aims to offer financial support to fishers impacted by adverse weather conditions, which often prevent them from fishing in nearshore waters.
The project is being supported by the Ocean Risk and Resilience Action Alliance (ORRAA), with funding from the Government of Canada and the UK Government’s Blue Planet Fund. It will help mitigate income losses resulting from dangerous weather, such as high winds, rough seas, and heavy rainfall, which are becoming increasingly common due to climate change.
Government Commitment to Supporting Small-Scale Fishers
The pilot initiative, backed by the Philippine Government, will see BFAR as the policyholder. It will offer parametric insurance coverage to registered small-scale fishers as a benefit for their commitment to sustainable fishing practices. The government has allocated part of its budget to fund the premium costs for this project, demonstrating significant support for innovative solutions to climate risk.
The coverage will provide up to US$100 per policy cycle to help offset income loss from adverse weather. “This is not just insurance; it is an investment in our fishers,” said Roy Ortega of BFAR, who also leads the Technical Working Group on Parametric Insurance. “We’re protecting those who protect our seas.”
A Groundbreaking Solution for Climate-Vulnerable Communities
Dr Christopher Au, Head of APAC Climate Risk Centre at Willis, highlighted the increasing risks small-scale fishers face due to climate change. “With over 1.9 million registered small-scale fishers relying on nearshore waters for their livelihoods, the impact of climate change is a major concern. The new insurance solution, the first of its kind in the Philippines, uses a weather index based on wind speed, sea state, and rainfall to determine payout eligibility, ensuring timely and direct compensation when fishing days are lost,” Dr Au explained.
The parametric risk transfer capacity for this project is provided by The Natural Disaster Fund, a public-private partnership between the UK and German Governments, with support from Hannover Re and managed by Global Parametrics Limited, a subsidiary of CelsiusPro Group. The insurance model is designed to be affordable and scalable, offering reliable and timely financial support to fishers during periods of severe weather.
The parametric insurance index will be calculated over five-day periods and compared against historical weather data to determine the severity of the conditions relative to the expected norm. Fishers who formally register and commit to sustainable fishing practices will be eligible for coverage.
Positive Impact on Coastal Communities and Ecosystems
Brett Jenks, CEO of Rare, stressed the wider benefits of the initiative: “Bad weather can cause serious hardship for fishing households throughout the tropics. This pilot takes a proven product – parametric insurance – and applies it in a new context, insuring people rather than assets. The result will be less financial pressure on households, reduced fishing pressure on ecosystems, and more resilient coastal communities.”
Chip Cunliffe, Senior Director of Innovation and Pipeline Development at ORRAA, noted the importance of the partnership in addressing the growing threats posed by climate change. “As climate change intensifies and weather patterns become more unpredictable, small-scale fishers face mounting risks to their safety and livelihoods. This partnership represents a vital step in developing market-ready solutions, like parametric insurance, to protect income and build resilience for climate-vulnerable coastal communities in the Philippines.”
Potential for National Expansion
Israel Q. De La Cruz, Department Manager at PCIC, who is directly involved in the pilot, expressed optimism about the long-term potential of the scheme. “This is an important first for PCIC as we explore revenue-based parametric insurance for fishers. We see this as a complement to our existing coverage, offering a faster, data-triggered option that can respond when fishers are unable to go to sea. If the pilot proves successful, we hope it can evolve into a nationally scalable tool for protecting coastal livelihoods.”
About Rare
Rare is an international conservation organisation dedicated to inspiring change so people and nature can thrive. With over 50 years of experience, Rare focuses on community-driven solutions that help individuals manage their futures by shifting behaviours that benefit both people and the environment.
About ORRAA
The Ocean Risk and Resilience Action Alliance (ORRAA) connects various sectors, including finance, insurance, governments, civil society, and local partners, to create finance and insurance products that promote coastal and ocean resilience. Its mission is to activate at least USD $500 million in investments by 2030 to build the resilience of 250 million climate-vulnerable coastal people in the Global South.
About WTW
WTW (NASDAQ: WTW) provides data-driven, insight-led solutions in the areas of people, risk, and capital. With a presence in 140 countries and markets, WTW helps organisations enhance resilience, improve strategy, and maximise performance through local expertise and global insights.