Last August 1, 2014, PGA Sompo Japan Insurance Inc. Chairman and CEO Robert Coyiuto, Jr. announced the launching of “Typhoon Guard Insurance”, an insurance product for agricultural producers in Mindanao to mitigate damages caused by typhoons, after obtaining final approval from the Insurance Commission.
Typhoon Guard Insurance is an Index Insurance* which pays the insured the predetermined insured amount if the center of typhoon passes through the predetermined area of coverage. It is the first time in the Philippine insurance industry to provide a weather index insurance that uses typhoon as the trigger for the payment of the insured amount.
The initial market is the banana producers in Mindanao. This weather index package will soon be offered to other agrarian producers for sugarcane and other agricultural products. This pioneering insurance product was a result of extensive study and strong advocacy of PGA Sompo to contribute solutions to the ravaging effects of natural hazards. This will allow the agriculture sector options to alleviate the perilous consequences of climate change confronting the world.
*Index Insurance… An insurance product that pays insured amount to the insured when an index, such as observed values of specific weather, meets predetermined conditions.