This study aims to explore how Ecosystem-Based Adaptation (EbA) and Nature-Based Insurance Solutions (NbIS) can effectively mitigate the impacts of climate-related hazards in the Philippines and in the region. It delves into understanding the policy landscape, examining market practices through case studies, identifying challenges in the sector, and proposing steps to scale EbA and NbIS solutions in the country.
Through one-on-one interviews with 23 individuals, focus group discussions with key partners in the private and regulatory sectors, and a webinar that attracted over 65 participants, we gained valuable insights. However, the study findings reveal a low awareness among local partners in the Philippines, with only 30% of participants being aware of these solutions. Around 80% of participants emphasized the crucial role of government support in scaling these solutions. Despite the low awareness, there is a clear appetite among local and international insurance partners to pilot and potentially scale more Nature-Based Insurance Solutions in the Philippines. It is evident from available data that EbA solutions can significantly reduce financial losses while providing long-term environmental and social benefits. Natural assets like corals and mangroves, in addition to their environmental benefits, hold high economic value that should be considered and valued as assets like grey infrastructure by insurance companies.
The Philippines, along with neighbouring countries like Indonesia, boasts diverse and extensive coral and mangrove assets, which can substantially reduce the impact of storm surges. Investing in nature-based resources is a logical risk management strategy, especially considering that climate change could significantly reduce the Philippines’ gross domestic product (GDP).
The Philippines is well-positioned to become a leader in the EbA insurance space, given the availability of funds from national and international agencies, relevant policies, and successful examples of scaling innovative insurance products like microinsurance, which now covers 57 million lives. Proven case studies from countries like Fiji, Hawaii, and Mexico provide a foundation for the Philippines to build on and create a thriving ecosystem for EbA and NbIS.