The Central Bank of the Philippines and the Insurance Commission used a webinar on 13 May 2026 to highlight the potential of bundling parametric insurance with credit to enhance lending to climate-exposed sectors. They presented the structure as a credit-enhancing tool that can support continued financing in vulnerable areas while strengthening financial institutions’ risk management. Parametric insurance provides automatic payouts once predefined weather thresholds are met. During the webinar, BSP Assistant Governor Pia Bernadette Roman-Tayag described parametric insurance as both a resilience and bankability tool. The session drew more than 400 participants from banking, insurance and development institutions and covered international practices, product design, credit integration and distribution channels for bundled insurance products. Speakers included representatives from public and private sector institutions involved in insurance, banking and development. The event formed part of the BSP’s Knowledge Exchange Series on Sustainability.
Central Bank of the Philippines2026-05-28
Central Bank of the Philippines and Insurance Commission highlight credit linked parametric insurance to support lending to climate exposed sectors
The Central Bank of the Philippines and the Insurance Commission used a webinar to promote bundling parametric insurance with credit to enhance lending to climate-exposed sectors and strengthen financial institutions’ risk management. Officials described parametric insurance, which pays out automatically when predefined weather thresholds are met, as both a resilience and bankability tool, and discussed international practices, product design, credit integration and distribution channels.