THE Philippine Crop Insurance Corp. (PCIC) and German development cooperation agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on Monday signed an agreement to pilot a mangrove insurance project in Eastern Visayas.
The project will use a mechanism for the speedy release of funding for mangrove assessment, cleanup, and restoration efforts following climate-related phenomena such as typhoons, GIZ said in a statement.
Insurance payouts will be facilitated by predefined parameters such as typhoon wind speed or storm surge levels. This would allow restoration to begin within days, PCIC said.
PCIC will develop and operationalize the insurance product, with assistance and support from GIZ and German consulting firm GOPA-AFC GmbH. PCIC’s experience would allow it to design insurance solutions that are suited to the Philippine context, GIZ said.
“This pilot expands PCIC’s role in developing insurance products that respond to emerging climate risks,” PCIC President Jovy Bernabe said. “Protecting mangroves through insurance helps safeguard coastal livelihoods while reducing recovery costs after disasters.”
The project will be implemented under the Strengthening Disaster Resilience and Risk Mitigation through Ecosystem-based Planning and Adaptation (E4DR).
The Philippines has 311,216 hectares of mangrove areas as of 2020, according to data from the Philippine Statistics Authority.
These have an estimated value of P50,000 to P200,000 annually depending on location from ecosystem services, said GIZ.
Eastern Visayas was chosen as the project site since it is among the most exposed regions to typhoons, storm surges, and coastal flooding, GIZ noted.
It ranks third among regions in terms of mangrove area, spanning 34,679 hectares or 11 percent of the country’s total mangrove cover.
“Eastern Visayas is at the frontline of climate change,” said Dr. Nicole Kranz, GIZ climate action cluster coordinator for the Philippines and the Pacific Island Countries. “By piloting mangrove insurance in this region, we demonstrate how nature-based solutions and innovative insurance mechanisms can work together to protect both ecosystems and coastal communities.”
The onslaught of Typhoon Yolanda underlined the role of mangroves as natural coastal defenses during climate-related phenomena, GIZ said, adding that mangrove forests not only weaken waves and reduce coastal erosion but also protect communities, fisheries and livelihoods as well.
The project is aligned with the Philippine Development Plan, the National Climate Change Action Plan, and the National Disaster Risk Reduction and Management Framework, PCIC said.
