TACLOBAN CITY — When typhoon “Yolanda” tore through the city in November 2013, a mangrove forest nurtured by the local fishing community stood as a shield, protecting hundreds of residents along Cancabato Bay from its full fury.

Now, taking into account 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 (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 help reduce wave energy, curb coastal erosion, and protect coastal communities. They also support fisheries and local livelihoods, with the ecosystem services they provide valued at an estimated P50,000 to P200,000 per year, depending on the location.

The Philippines has a total mangrove area of 311,216 hectares (MAP, 2020). Eastern Visayas ranks 3rd among regions in terms of mangrove extent, which accounts 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, as a government-owned insurer, will lead the development and implementation of the product, leveraging its expertise in agricultural and disaster risk insurance to ensure it aligns with both local and national needs.

PCIC President Jovy Bernabe said the agency will bring its extensive experience as a government-owned insurer to the partnership, helping design and implement insurance solutions tailored to local climate and disaster risks.

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