Pioneer Insurance highlights vital role of microinsurance in agriculture sector
At the recent Climate and Disaster Risk Insurance Forum organized by the Asian Development Bank (ADB), Pioneer Insurance President and CEO Lorenzo Chan, Jr. reiterated the company’s initiatives to support the agriculture sector amid the growing impact of climate change.
Speaking as a panelist for the “Managing Weather Risks for Crops and Agricultural Value Chains” session, Mr. Chan emphasized why it is important to provide insurance support to the agricultural sector.
“Almost 24%, or roughly over 25 million of the Philippine population are engaged in agriculture, and exposure to natural calamities is a constant threat that continues to cause devastating damage to their livelihood.”
In 2022, with support from the ADB, CARD Pioneer Microinsurance, Inc. (CPMI) partnered with the state-run Philippine Crop Insurance Corp. (PCIC) to pilot a risk-sharing insurance scheme for farmers, boosting their financial resilience against risks that threaten their source of income.
CPMI is a joint venture between Pioneer Insurance, a significant player in the insurance industry, and CARD Mutually Reinforcing Institutions (CARD MRI), the country’s largest microfinance institution formed to specifically address the calamity, agriculture, and income-loss insurance needs of the marginalized market.
Mr. Chan, a staunch advocate for inclusivity, also emphasized the importance of quick claims settlement for this sector.
“You need to pay claims right away because this market does not have the luxury of time to wait for their claim benefit. They need immediate help, so they can restart their lives and livelihood right away,” Mr. Chan said.
In addition to claims handling, he also tackled some of the hurdles insurers face to reach this market, such as limited market capacity, subsidy issues, taxation on non-life insurance products, and the adequacy of coverage.
“Through affordable insurance products, we want to be part of the solution in addressing the needs of the industry that provides food for our tables,” said Mr. Chan.
From left to right: Moderator Arup Chatterjee, ADB Principal Financial Sector Specialist; Anuj Kumbhat, WRMS Global Co-Founder and CEO; Maria Mateo, IBISA Network Co-Founder and CEO; Brandon Mathews, Stonestep Ag CEO and Co-Founder; Lorenzo Chan, Jr., Pioneer Insurance President and CEO; and Jae-hoon Sung, Korea Rural Economic Institute Senior Research Fellow
Joining Mr. Chan on the panel were Brandon Mathews, CEO and Co-Founder of Stonestep AG; Anuj Kumbhat, Co-Founder and CEO of WRMS Global; Jae-hoon Sung, Senior Research Fellow at the Korea Rural Economic Institute; and Maria Mateo, Co-Founder and CEO of IBISA Network. Mr. Arup Chatterjee, ADB Principal Financial Sector Specialist, served as the moderator for the session.
The Climate and Disaster Risk Insurance Forum was organized by the Asian Development Bank to address climate and disaster risks to boost financial resilience for governments, small businesses, and agriculture in Asia.
It gathered insurance experts and policy makers from all over the world to discuss innovative insurance and capital market solutions.
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