On the recent Climate and Disaster Risk Insurance Forum organized by the Asian Development Bank (ADB), Pioneer Insurance President and CEO Lorenzo Chan, Jr. reiterated the corporate’s initiatives to support the agriculture sector amid the growing impact of climate change.
Speaking as a panelist for the “Managing Weather Risks for Crops and Agricultural Value Chains” session, Mr. Chan emphasized why it can be crucial to supply insurance support to the agricultural sector.
“Almost 24%, or roughly over 25 million of the Philippine population are engaged in agriculture, and exposure to natural calamities is a continuing threat that continues to cause devastating damage to their livelihood.”
In 2022, with support from the ADB, CARD Pioneer Microinsurance, Inc. (CPMI) partnered with the state-run Philippine Crop Insurance Corp. (PCIC) to pilot a risk-sharing insurance scheme for farmers, boosting their financial resilience against risks that threaten their source of income.
CPMI is a three way partnership between Pioneer Insurance, a big player within the insurance industry, and CARD Mutually Reinforcing Institutions (CARD MRI), the country’s largest microfinance institution formed to specifically address the calamity, agriculture, and income-loss insurance needs of the marginalized market.
Mr. Chan, a staunch advocate for inclusivity, also emphasized the importance of quick claims settlement for this sector.
“It is advisable to pay claims instantly because this market doesn’t have the posh of time to attend for his or her claim profit. They need immediate help, in order that they can restart their lives and livelihood instantly,” Mr. Chan said.
Along with claims handling, he also tackled a number of the hurdles insurers face to achieve this market, reminiscent of limited market capability, subsidy issues, taxation on non-life insurance products, and the adequacy of coverage.
“Through reasonably priced insurance products, we wish to be a part of the answer in addressing the needs of the industry that gives food for our tables,” said Mr. Chan.
Joining Mr. Chan on the panel were Brandon Mathews, CEO and Co-Founding father of Stonestep AG; Anuj Kumbhat, Co-Founder and CEO of WRMS Global; Jae-hoon Sung, Senior Research Fellow on the Korea Rural Economic Institute; and Maria Mateo, Co-Founder and CEO of IBISA Network. Mr. Arup Chatterjee, ADB Principal Financial Sector Specialist, served because the moderator for the session.
The Climate and Disaster Risk Insurance Forum was organized by the Asian Development Bank to deal with climate and disaster risks to spice up financial resilience for governments, small businesses, and agriculture in Asia.
It gathered insurance experts and policy makers from everywhere in the world to debate revolutionary insurance and capital market solutions.
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