TACLOBAN CITY — Hundreds of residents along the coast of Cancabato Bay were saved when Typhoon Yolanda struck this city in November 2013, thanks to a mangrove forest established by a local fishing community.

Now, taking lessons from the critical role of mangroves as natural coastal defenses, as seen during Typhoon Yolanda, the German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH aims to develop and operationalize an insurance product for mangroves.

On Monday, GIZ and the Philippine government, through the Department of Agriculture – Philippine Crop Insurance Corporation (DA-PCIC), signed a Memorandum of Agreement to implement a mangrove insurance initiative in Eastern Visayas.

“Eastern Visayas is on the frontline of climate change,” said Nicole Kranz, Climate Action Cluster Coordinator, GIZ Philippines and the Pacific Island Countries. “By piloting mangrove insurance in this region, we demonstrate how nature-based solutions and innovative insurance mechanisms can work together to protect both ecosystems and coastal communities.”

GIZ, in a statement, said the mangrove insurance pilot will introduce an innovative risk-financing mechanism designed to enable rapid funding for mangrove assessment, clean-up, and restoration following climate-related events, especially typhoons.

“Insurance payouts will be triggered by predefined parameters—such as typhoon wind speed or storm surge levels—allowing restoration activities to begin within days rather than months, when support is often delayed,” it said.

Mangrove forests reduce wave energy, limit coastal erosion, protect communities, and sustain fisheries and local livelihoods. They have an estimated economic value of P50,000 to P200,000 per year, depending on location, from ecosystem services.

The Philippines has a total mangrove area of 311,216 hectares (MAP, 2020). Eastern Visayas ranks third among regions in mangrove extent, accounting for 11 percent, or 34,679 hectares.

Implemented under the project Strengthening Disaster Resilience and Risk Mitigation through Ecosystem-based Planning and Adaptation (E4DR), GIZ will provide technical assistance and support PCIC in developing and operationalizing the insurance product.

PCIC, in turn, will lead the product’s development and implementation as a government-owned insurer, applying its expertise in agricultural and disaster risk insurance and ensuring that the insurance product fits local and national conditions.

PCIC President Jovy Bernabe said the agency will bring into the partnership its extensive experience as a government-owned insurer in managing climate and disaster risks, contributing to the design and implementation of insurance solutions tailored to local contexts.

“Protecting mangroves through insurance helps safeguard coastal livelihoods while reducing recovery costs after disasters,” Bernabe said.