At the recent Climate and Disaster Risk Insurance Forum hosted by the Asian Development Bank (ADB), Lorenzo Chan, Jr., president and CEO of Pioneer Insurance, reiterated the company’s initiatives to support the agricultural sector amid the growing impact of climate change.
As a panelist for the session “Managing Weather Risks for Crops and Agricultural Value Chains,” Mr Chan highlighted why it is important to provide insurance support to the agricultural sector.
“Nearly 24%, or roughly more than 25 million of the Philippine population, is engaged in agriculture, and exposure to natural disasters is a constant threat that continues to cause devastating damage to their livelihoods.”
In 2022, CARD Pioneer Microinsurance, Inc. (CPMI) with support from the ADB together with the state-run Philippine Crop Insurance Corp. (PCIC) to pilot a risk-sharing insurance program for farmers, increasing their financial resilience to risks. threaten their source of income.
CPMI is a joint venture between Pioneer Insurance, a major player in the insurance industry, and CARD Mutually Reinforcing Institutions (CARD MRI), the country’s largest microfinance institution, established to specifically address insurance needs in the areas of disaster, agriculture and loss of income of the marginalized population. market.
Mr Chan, a staunch advocate for inclusivity, also emphasized the importance of swift claims settlement for this sector.
“You have to pay claims immediately because this market does not have the luxury of waiting for their claim payment. They need immediate assistance so that they can resume their lives and livelihoods immediately,” Mr Chan said.
In addition to claims handling, he also addressed some of the barriers that insurers face in reaching this market, such as limited market capacity, subsidy issues, taxation of non-life insurance products and adequacy of coverage.
“Through affordable insurance products, we want to be part of the solution in meeting the needs of the industry that provides food for our tables,” said Mr Chan.
Mr. Chan was joined on the panel by Brandon Mathews, CEO and co-founder of Stonestep AG; Anuj Kumbhat, co-founder and CEO of WRMS Global; Jae-hoon Sung, Senior Research Fellow at the Korea Rural Economic Institute; and Maria Mateo, co-founder and CEO of IBISA Network. Mr. Arup Chatterjee, Chief Financial Sector Specialist, ADB, acted as moderator for the session.
The Climate and Disaster Risk Insurance Forum was organized by the Asian Development Bank to address climate and disaster risks to increase the financial resilience of governments, small businesses and agriculture in Asia.
Insurance experts and policymakers from around the world gathered to discuss innovative insurance and capital markets solutions.
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