$70m World Bank loan supports climate risk cover for farmers

The World Bank is providing a $70m loan to the Philippines to establish a co-insurance pool aimed at protecting small farmers and fisherfolk from climate change impacts, the Department of Agriculture (DA) announced on Sunday.

A co-insurance pool allows multiple insurers to share the risk of a large or complex policy, such as those covering natural disasters or energy projects.

The loan will support a five-year climate-protection programme starting in 2026, benefiting an estimated 750,000 small farmers and fisherfolk, the DA said.

The World Bank aims to use its loan to mobilise an additional $300–500m in climate protection for farmers, fisherfolk, and agri-based micro, small and medium enterprises (MSMEs).

The Department of Finance is the borrower in the loan programme, with the DA as the project implementer.

The programme will draw on the Philippine Crop Insurance Corporation’s expertise in agricultural insurance alongside the technical capabilities of the National Reinsurance Corporation of the Philippines.

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