Philippines: Why households, enterprises need micro-insurance
At risk of being heavily hit by the effects of climate change are low-income households as well as micro-, small-, and medium-sized enterprises (MSMEs), which make up the majority of businesses in the Philippines.
While there are a lot of ways to be more resilient to climate change, both the government and the private sector are encouraging Filipinos to take up micro-insurance.
Earlier in February, the Philippines and Germany, through GIZ, renewed their partnership to develop a Microinsurance Disaster Risk Insurance (MicroDRI) for poor households and MSMEs.
To cover all MSMEs, GIZ said that an "insurance premium worth P604,758,280 is needed if all of the 828,436 microenterprises in the Philippines were to be insured against climate and disaster- related risks through the MicroDRI product."
GIZ added that the MicroDRI "priced at around P2 per day or P730 per year can insure enterprises for P100,000 up to P500,000."