This prefeasibility study is compiled by CelsiusPro and MAA General Assurance Philippines to evaluate the viability of introducing a parametric typhoon insurance scheme for the Filipino retail market. The report assesses a range of aspects relevant to the introduction of the Emergency Cash Product but pays particular attention to the demand assessment as well as the design and pricing of a concrete indexbased insurance product. The product is designed to target low-income Filipinos, addressing their acute financial exposure to typhoon risks.
The study concludes that there is a strong interest in the Emergency Cash Product among the distribution partner and reinsurers alike. The proposed product fits well within the emergency aid landscape in the Philippines, helping individuals bridge the gap between in-kind emergency relief and possible cash transfers provided by the Government of the Philippines and/or aid agencies. The Government maintains an enabling regulatory framework for the development of the microinsurance sector and has utilised parametric structures to address its own catastrophe exposure. These two aspects bode well for the launch of a parametric typhoon product targeting the low-income sector.