Insider Spotlight
The initiative is led by Philippine agritech platform Mayani in partnership with Asia Pacific insurtech firm Hillridge Technology. It is supported by the UK’s Foreign, Commonwealth, and Development Office through its Frontier Tech Hub, which funds technology solutions that can attract private investment and scale.
The pilot targets small-scale fisherfolk, one of the country’s most climate-vulnerable sectors.
The problem
Around 1.2 million small-scale fisherfolk in the Philippines depend on daily fishing for income. Yet only 2 percent have any form of insurance or risk protection.
When storms or strong winds hit, they cannot go out to sea. Just one week of bad weather can erase 70 to 100 percent of a household’s income. Annual typhoon-related losses in the fisheries sector are estimated at $94 million.
On top of that, many fisherfolk face unstable prices and uncertain demand. Without sure buyers, they often sell at low prices. This makes it harder to save, invest in better boats or gear, or recover after disasters.
The solution
According to a company release, the pilot combines two tools: market offtake agreements and parametric insurance.
Under market offtake deals, fisherfolk have more predictable buyers and clearer pricing. This helps stabilize income even during normal fishing periods.
Parametric insurance works differently from traditional insurance. Instead of checking actual damage, payouts are automatically triggered when weather data — such as wind speed, wave height, or rainfall — reaches agreed thresholds. This allows faster support when fishing days are lost due to extreme weather.
“In this pilot, we are testing whether a marine weather index can reliably correlate with real lost fishing days, because parametric insurance only strengthens resilience if payouts genuinely reflect fisherfolk’s lived experience of climate disruption,” said Nathan Kably, programme lead of the Frontier Tech Hub.
“ At the same time, we are assessing whether pairing parametric insurance with structured catch offtake models can stabilize fisherfolk incomes — reducing reliance on payouts alone and reinforcing everyday financial resilience. Beyond this, we are generating evidence on whether blended adaptation models (combining risk transfer and income stabilisation) provide a scalable pathway to protect climate-vulnerable fishing livelihood,” Kably said.
“Our goal is to build the evidence base the private sector needs: what level of risk reduction, cost savings, or revenue stability makes climate adaptation investable at scale?”
Why it matters
Faster payouts can help fisherfolk cover fuel, repairs, loan payments, and daily needs after storms. More stable market access can encourage investment in safer equipment and sustainable practices.
“We saw that smallholder income instability drives climate risk exposure and negative coping activities by our rural fisherfolk. Thus, Mayani is pushing for climate adaptation interventions that address the need for income predictability, not just timely climate information or post-disaster recovery support,” said Ochie San Juan, Mayani’s co-founder & chief farmer.
“Fundamentally, integrated financial and market mechanisms are crucial enablers of adaptive behavior.”
If successful, the model could be expanded nationwide and serve as a blueprint for climate adaptation finance across Southeast Asia. —Princess Daisy C. Ominga | Ed: Corrie S. Narisma
