Pioneer Insurance highlights the important role of micro insurance in the agricultural sector

At the recent Climate and Disaster Risk Insurance Forum organized by the Asian Development Bank (ADB), Pioneer Insurance President and CEO Lorenzo Chan, Jr. he also emphasized the company’s efforts to support the agricultural sector amid the increasing impact of climate change.

Speaking as part of the session on “Managing Climate Risks for Crops and the Agricultural Value Chain”, Mr. Chan emphasized why it is important to provide insurance support to the agricultural sector.

“Approximately 24%, or more than 25 million Filipinos are involved in agriculture, and exposure to natural disasters is a constant threat that causes serious damage to their livelihoods.”

By 2022, with support from ADB, CARD Pioneer Microinsurance, Inc. (CPMI) partnered with the Philippine Crop Insurance Corp. (PCIC) run by the government to explore the risk sharing insurance scheme for farmers, strengthen their financial strength against potential risks. threatening 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 built to address the disaster, agriculture, and income loss insurance needs of the disadvantaged. the market.

Mr. Chan, a staunch advocate of inclusiveness, also emphasized the importance of prompt payment of claims for the sector.

“You have to pay the claims immediately because this market does not have time to wait for their claim benefit. They need help immediately, to restart their lives and earn a living quickly,” said Mr Chan.

In addition to claims management, he also faced some of the challenges that insurers face to access this market, such as limited market capacity, subsidy issues, taxation of non-life insurance products, and adequacy of payments.

“With affordable insurance products, we want to be part of the solution in addressing the needs of the industry that provides food for our tables,” said Mr Chan.

Joining Mr. Chan on the panel were Brandon Mathews, CEO and Co-Founder of Stonestep AG; Anuj Kumbhat, Founder and CEO of WRMS Global; Jae-hoon Sung, Senior Researcher at the Korea Rural Economic Institute; and Maria Mateo, Founder and CEO of IBISA Network. Mr. Arup Chatterjee, ADB’s Principal Financial Sector Specialist, served as the moderator for the session.

The Climate and Disaster 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.

It brought together insurance experts and policy makers from around the world to discuss new insurance and capital market solutions.

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