A pilot mechanism in the Philippines which signed up 4,000 fisherfolk to provide insurance for their livelihoods has targeted expansion into seven additional countries as part of plans to scale-up.
The pilot, part of the Ocean Risk and Resilience Action Alliance (ORRAA), saw initial take-up reach eight times its initial target of 500, Flora Belinario, senior manager at Rare, told a briefing hosted as part of the COP26 Loss and Damage day.
The project saw Rare partner with local providers to offer two insurance policies providing life, accident property damage and healthcare cover.
The scheme also delivered insurance literacy training to more than 2,760 people, helping improve understanding of the way the product works and can help manage volatility of earnings.
“The programme gave opportunities for fishing communities to have access to social protection schemes, and restricting their need to resort to borrowing,” Belinario said.
“We hope to see these communities prosper as we work towards combating impacts of climate change.”
Belinario acknowledged there were challenges in establishing and scaling up this type of cover.
“The cost of delivering insurance to rural communities is quite high. We need to innovate around payment, collection and insurance claims mechanisms to reduce transaction cost and complexities,” she said.