technical working group meeting: policy and regulation

1st Climate Risk Insurance

Technical Working Group Meeting:

Policy and RegulationMay 20, 2019

Sofitel Manila

1st Climate Risk Insurance Technical Working Group Meeting: Policy and RegulationMay 20, 2019

Agenda Item No. 1

Organizational Matters

Action Needed

Approval of List of Deliverables, Composition of

Members, Logistics Guidelines

TWG on Policy & Regulation Tasks

May 20, 2019

1. Analysis of fiscal policies and public fund sources that can support CRI

for households and MSMEs and propose mechanism to access them

2. Criteria for selection participating/partner LGUs

3. List of participating/partner LGUs selected based on approved criteria

4. National DRI concept paper for the integration of DRI/CRI for

households and MSMEs in the LCCAPs and DRRMPs of LGUs

5. Recommendations on approaches to integrate DRI/CRI in the LCCAPs

and DRRMPs of LGUs

1st Climate Risk Insurance Technical Working Group Meeting: Policy and Regulation


Milestone Key Activity May Jun Jul Aug Sep Oct Nov Dec Responsible

1. Access to public fund sources for CRI is clarified

Confirmation of existing fiscal policies and public fund sources that can support CRI for households and MSMEs and clarifying access to them for such purpose

TPR, NTF

2. Access to government data is provided to legitimate users

Provision of access to data needed for CRI product development as identified by the insurance industry

TBM, TUT

3. Partner-LGUs are selected Selection of partner-Local Government Units based on approved criteria for the development and implementation of CRI solutions

TPR, NTF

4. Appropriate CRI products and their marketing/distribution systems are available and endorsed

Development and endorsement of appropriate CRI products and their marketing/distribution systems based on international Key Performance Indicators

TBM, TUT, NTF

5. Technology platform for CRI solutions and advocacy is developed

Development of technology platform for CRI solutions and advocacy

TBM, TUT, NTF

7. National DRI concept paper is developed

Development of concept paper for the integration of DRI/CRI into the LCCAPs and DRRMPs of LGUs

TPR, NTF

6. DRI/CRI for households and MSMEs are integrated in the LCCAPs and DRRMPs

Integration of DRI/CRI for households and MSMEs in the LCCAPs and DRRMPs of LGUs

TPT, NTF

8. Capacities of public and private stakeholders are developed

Capacity development of public and private stakeholders through webinars and Public-Private Dialogues

GIZ-RFPI Asia III

9. CRI Program is monitored jointly by GIZ and LGUs

Joint monitoring of CRI Program implementation GIZ-RFPI Asia III, LGUs

TWG on Policy & Regulation Work Plan May-Dec 2019

TWG on Policy & Regulation Membership

May 20, 2019

1. DOF – Proposed Chair

2. CCC

3. DBM

4. DILG

5. DSWD

6. DTI

7. IC

8. NAPC

9. NEDA

10.OCD

11.RFPI


GIZ Guidelines on Funding and Logistics Support

May 20, 2019

1. NTF Meeting outside Metro Manila – actual travel cost of ONE person per

member organization covered by RFPI; principal and alternate members may

both join but cost for only one participant shall be covered

2. TWG Meetings outside Metro Manila - actual travel cost of ONE person per

member organization covered by RFPI; other staff may participate but cost for

only one participant shall be covered

3. Training and Conference - actual travel cost of up to TWO persons per member

organization covered by RFPI; other staff may participate but cost for only two

participants shall be covered

4. Host Organization – member organization hosting the NTF/TWG meeting or

training may send more than two staff to participate but RFPI will only cover

actual travel cost of up to TWO participants

5. Financing Agreement – RFPI may provide funding grant for work of the TWG to

be managed and accounted for by TWG Chair according to workplans and GIZ

funding guidelines

6. Consultancies – RFPI to directly procure consultants when necessary


May 20, 2019

Agenda Item No. 2

DoF Presentation: Overview of Philippine Disaster and

Risk Finance and Insurance Strategy: Key Points for

CRI at Household Level and MSMEs, leading to

development of CRI Concept Paper >>

Action Needed

For discussion


May 20, 2019

Agenda Item No. 3

Initial Findings: Stocktaking, Analysis and Assessment

of National Disaster Risk Finance and Insurance

Strategies and International CRI Experiences

Action Needed

For discussion to agree on key elements to be included

in a CRI concept for the Philippines


May 20, 2019 1st Climate Risk Insurance Technical Working Group Meeting: Policy and Regulation

African Risk Capacity

Transforming disaster risk management

and financing in Africa

Enables countries to strengthen their

DRMF systems and access rapid and

predictable financing when disaster

strikes to protect the food security and

livelihoods of their vulnerable populations

Over 2,100,000 vulnerable people

assisted

ARC Replica - payouts go to World Food

Programme to distribute food aid. ARC’s

distribution network reaches the

extremely poor and poor households.

Caribbean Catastrophe Risk Insurance Facility

Sovereign risk pool, covers tropical

cyclones, linked to wind and storm surges

and earthquakes; excess rain coverage,

linked to damage from rainfall; and the

aggregate deductible coverage to protect

against basis risks to governments to

meet their immediate liquidity needs in the

aftermath of disaster.

World’s first regional fund utilizing

parametric insurance

Limits financial impact of catastrophic

hurricanes, earthquakes and excess

rainfall events to Caribbean and – since

2015 – Central American governments

Two Central American and nineteen

Caribbean governments are currently

members of the facility

http://www.africanriskcapacity.org/


PrAda

Adaptation of agricultural

value chains to climate

change

Country: Madagascar

Implementing measures in

three areas: Agro-

meteorological and

agricultural extension

services; Structural

frameworks of the value

chains; Climate risk

insurance schemes

Overall term: 2017 to 2020

Rural ResilienceInitiative

Risk reduction, risk transfer,

prudent risk taking, risk

reserves

Currently active in Ethiopia,

Senegal, Malawi and Zambia

Piloted in Kenya and

Zimbabwe

US$ 6.6 million provided in

micro-insurance protection to

R4 participants in 2017

57,000 farmers (about

300,000 people) reached in

five countries as of early

2018


Vietnam - National Agriculture

Insurance Program

Government supported climate risk

insurance for agriculture via Public-Private

Partnership.

Insurers can provide farmers with

insurance products with a subsidy from

government

Extremely poor and poor households will

receive support of up to 90% for

agricultural insurance fees from

Government, while near poor or at-risk

households will receive support of up to

20% if they work within a cooperative

including using innovations in planting and

manufacturing towards a clean, high-tech

and eco-friendly agriculture

Crop and Livestock Disaster

Insurance in Mexico (CADENA)

Launched in 2003 under the Ministry of

Agriculture, Livestock, and Fisheries

(SAGARPA), the Mexican Government

(both Federal and State level) and has been

providing insurance protection against

catastrophic risks to its smallholder farmers

via both parametric and indemnity-based

insurance, involving public and private

insurance/reinsurance companies to

underwrite the risks

CADENA has grown to cover over 70% of

the 14 million hectares of agricultural land

cultivated annually by smallholders.

Protection in the form of a pre-agreed lump

sum per farm. CADENA also buys

catastrophe risk protection from the

international reinsurance market.


Philippine Laws and Government Policies Relating to Climate Risk

Insurance

Macro level:

1. The National Disaster Risk Reduction and Management Plan stipulated

in Republic Act 10121, assigned the Department of Finance as lead in

enabling access of communities to applicable disaster risk financing and

insurance.

Update: National Disaster Risk Financing and Insurance Strategy

available

Status:

Fully implemented On-going development No development

Type presentation tit le here27/05/2019



Insurance

Macro level:

2. The Department of Trade and Development MSME Development Plan

2017-2022 directs MSMEs to access credit enhancement mechanisms,

such as guarantees or insurance products to diversity MSME funding

sources.

Update: Micro Disaster Risk Insurance product being finalized with GIZ

Status:

Fully implemented On-going No development




Insurance

Macro level:

3. The Philippine Development Plan 2017 – 2022 (PDP) on Agriculture,

Forestry and Fisheries targets to increase the number of small farmers and

fisherfolk that are provided with agricultural insurance.

Update: PCIC has provided free crop insurance to 1.7 million farmers

using Government subsidy of P3.365 billion in 2017. Expansion of enrolled

farmers through new schemes on-going.

Status:





Insurance

Micro level:

4. RA 10174, an act establishing the People’s Survival Fund (amending

RA 9729 or the Climate Change Act of 2009), mandates the use of fund as

a guarantee for risk insurance for farmers, agricultural workers and other

stakeholders.

Update: No LGU experience on using LDRRMF for payment of

Calamity/Climate Risk Insurance premium.

Status:





Insurance

Micro Level:

5. RA 10121 Sec. 21 stipulates payment of premium on calamity insurance

by LGUs, from the Local Disaster Risk Reduction and Management Fund

(LDRRMF), calculated as 5% of the LGU Internal Revenue Allotment.

Update: No LGU experience on using LDRRMF for payment of

Calamity/Climate Risk Insurance premium.

Status:





Insurance

Micro Level:

6. RA 7160 or the Local Government Code of 1991: authorizes LGUs to

buy group insurance from the private insurance sector, for its barangay

officials.

Update: No LGU experience using IRA for payment of Calamity/Climate

Risk Insurance premium for barangay officials.

Status:



1st Climate Risk Insurance National Task Force MeetingMay 20, 2019

I. POLICY AND REGULATION II. BUSINESS MODEL III. USE OF

TECHNOLOGY

Integrate DRI/CRI for HHs and

MSEs in the plans at LGU level

Access to Data: Climate

risk assessment

(hazards, exposure,

vulnerability)

Development of

Technology platform to

support

LCCAP (Local Climate Change

Action Plan)

CRI Product

development & delivery

for two market

segments:

1) Climate risk

assessment and

modellingDRRMP (Disaster Risk

Reduction & Management Plan)

Find resources for insurance

in the fiscal policies

1) For Social Protection

programs at the LGUs

2) CRI awareness

raising and

Advocacy

Integration of CRI in the Social

Protection Programs

2) For Microinsurance

sector

3) Learning

management

IV. CRI HUB (through the MEFIN Network)

• Capacity Development (CD) of public and private stakeholders

• Knowledge Management (KM)

• Public Private Dialogue (PPD)

GIZ RFPI III – Overview of Conceptual Framework (Philippines)

May 20, 2019

Agenda Item No. 4

Summary of issues and next steps, schedules and

agenda for the next TWG meetings

Action Needed

For approval: Schedule of next TWG meetings, agenda

and preparatory tasks


May 20, 2019

Proposed next meetings dates and agenda items

Schedules Agenda

2nd TWG Policy &

Regulation

15 August

9:00 – 12:00

Please refer to reference

material

2nd TWG Business Model &

Use of Technology

(combined)

15 August

14:00 – 17:00

3rd TWG Policy &

Regulation

20 November

9:00 – 12:00

(parallel meetings)

3rd TWG Business Model

& Use of Technology

(combined)

20 November

9:00 – 12:00

(parallel meetings)



#END#

Thank You

technical working group meeting: policy and regulation

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