This prefeasibility study is compiled by CelsiusPro and MAA General Assurance Philippines to evaluate the viability of introducing a parametric typhoon insurance scheme for the Filipino retail market. In collaboration with their main distribution partner, a national pawnshop operator (PO), the proposed Emergency Cash Product will provide a lump sum payment within days of a severe storm event. The product is designed to target low-income Filipinos, addressing their acute financial exposure to typhoon risks. The provision of immediate liquidity ensures policyholders can manage their expenditure needs, such as emergency goods, transportation, temporary accommodation, or initial repair work. The drafting of this report is supported by grant funding provided by the InsuResilience Solutions Fund.
The report assesses a range of aspects relevant to the introduction of the Emergency Cash Product but pays particular attention to the demand assessment as well as the design and pricing of a concrete indexbased insurance product. MAA General Assurance led the efforts to conduct a demand survey with 139 of the national pawnshop operator’s sales representatives from across the country. As pawnshop operators, their staff are in regular and close contact with the target group, enabling them to assess the product’s appeal. CelsiusPro established the preliminary product structure following the review of available typhoon data and extensive discussions with the (re)insurance market. Finally, the report provides an overview and a roadmap for the implementation of a pilot project to launch the Emergency Cash Product.
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