Insurtech company Igloo is introducing Weather Index Insurance (WII) in the Philippines to provide farmers with protection against climate-related risks. The product aims to address the country’s insurance gap, where only about one-third of farmers are covered despite government-subsidized premiums.
The initiative comes as the country shifts from months of extreme heat to the rainy season, which brings both relief and the threat of stronger typhoons. In 2024, the Department of Agriculture reported ₱57.8 billion in agricultural losses affecting more than 1.4 million farmers and fisherfolk. Causes ranged from El Niño-induced droughts and typhoons to pests and volcanic activity, with El Niño alone accounting for ₱15.7 billion in damage to key crops like rice and corn.
“We believe the same model can be applied to the Philippines, where frequent typhoons and prolonged droughts continue to impact agricultural productivity,” said John Chen, country manager for the Philippines and Thailand of Igloo. “The company has been in talks with local stakeholders to introduce weather-based coverage and is actively looking to expand its offerings in the country.”
Unlike traditional insurance, WII does not require an on-site assessment of damage. Instead, it uses measurable weather data, such as rainfall, temperature, or wind speed, as payout triggers. Once a predefined threshold is reached, compensation is automatically released, allowing faster and more objective claims processing.
The parametric model is already in use in Vietnam, where WII is integrated into telecommunications company MobiFone’s agricultural app, MobiAgri. The app uses Big Data, AI, blockchain, AR, and VR technologies to support digital farming. Through this platform, the insurance is available in 18 provinces and cities, supported by over 2,000 rain stations and 650 meteorological stations.
“With the right partners, including government agencies to agritech platforms and cooperatives, we can bring insurance closer to Filipino farmers and equip them with the tools to better withstand the effects of climate change,” Chen said.