Typhoon risk insurance for Marine Protected Areas in the Philippines

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) commissioned this pre-feasibility study in order to analyse the potential of new insurance solutions to assist MPAs bouncing back quickly in the aftermath of typhoon events. The Philippines is host to more than 1800 Marine Protected  Areas (MPAs) and is committed to significantly expand their number and size under the 30 x 30 framework. These MPAs face an increasing threat from multiple hazards, most notably typhoons, which can severely damage mangroves, coral reefs and seagrass meadows. Already chronically underfunded, many  MPA management councils struggle to replace lost monitoring assets and finance rehabilitation work.

Based on a brief literature review, four study sites were selected together with GIZ: Mabini/Batangas, Danjugan/Negros  Occidental, Biri LaRoSa/Northern Samar and Hinunangan/ Southern Leyte. At each of the four sites, numerous discussions with a diverse range of stakeholders were held in order to collect data, understand their constraints, aspirations and views on ecosystem services provided by the MPAs, as well as threats through typhoons or other hazards. The concept of dedicated  “MPA insurance” was introduced in order to understand stakeholders’ perception on its feasibility and impact on conservation outcomes. Encouragingly, all MPA managers visited are open to and interested in exploring how insurance could be integrated into their financing strategies. From the discussions, three focus areas for future product development have emerged: i) MPA  monitoring and enforcement assets, such as demarcation buoys, patrol boats and watch towers; ii) business interruption for fisherfolks when they are unable to go to sea due to restrictions imposed by the Philippine Coast Guard; and iii) clean-up and rehabilitation efforts for damaged mangroves.