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Financial Mechanisms

Parametric Insurance

Climate insurance product in the Philippines designed to cover MPAs and reef-positive businesses from financial losses due to extreme weather events.

Drivers of Degradation Addressed
Hero backgroundRising Oceanic Temperature

A climate insurance product in the Philippines designed to cover MPAs and reef-positive businesses from financial losses due to extreme weather events. Based on predefined climate triggers, such as sea temperature and storm intensity, the insurance provides quick payouts to support recovery efforts for MPA management and businesses affected by climate impacts.

The innovative parametric climate insurance has been designed with AXA climate to cover MPA management costs and MPA equipment replacement in case of a hurricane (business interruption). The insurance coverage started in April 2023 and initial premium costs were covered by a grant from Howden.

Author Blue Alliance Marine Protected Areas
Region Asia
Country Philippines
GFCR Programme Mamuhunan sa mga Marine Protected Areas (Responsible Investments in MPAs)
GFCR Convening Agent Blue Alliance Marine Protected Areas (BA)
Priority Coral Reef Sites Philippines
Sector Financial Mechanisms
Stage Investment Secured
Scale to Investment Yes
Key Contact Nicolas Pascal
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