Protecting the at-risk sector, such as micro, small, and medium enterprises or MSMEs, is a vital part of risk reduction. MSMEs are susceptible to the effects of natural catastrophes given their limited ability to rebound from such shocks, but they are especially important to sustain economic activities after these disasters.
This was among the key topics during Session 4 of the 10th edition of MEFIN Public-Private Dialogue (PPD10). The webinar entitled “Cutting climate and disaster risk insurance costs via risk reduction” aimed to identify ways to ensure that advancements in disaster risk reduction would result in more affordable climate and disaster-related risk insurance (CDRI) products.
AXA Philippines, represented by its Head of Emerging Customers segment Meek Villanueva, joined the session, which explored how disaster risk reduction can reduce risk exposure for firms and how this could translate into more affordable CDRI for enterprises, particularly for MSMEs.
During her talk, Villanueva discussed how natural disasters and climate change can present real risks to the low-income mass market. In fact, 74% of the population is left vulnerable to its impacts.
Last year, the country was shaken up by an unexpected volcanic eruption and several destructive typhoons. These natural hazards can damage businesses and physical assets and disrupt supply chains and operations.
Because of this, it is the goal of the AXA to protect the at-risk sector and to make sure that insurance is accessible, affordable, and relevant to this market. "Providing solutions to climate change and disaster risk is a key part of AXA's mission," Villanueva said.
She also stressed that AXA is strongly involved in climate change and disaster risk reduction on a macro level. For one, the company is part of a global risk pool. AXA is also part of a group of companies that look for new solutions to ensure that, apart from macro pools, they can make CDRIs reachable for the lower market and fill in the protection gap.
In the Philippines, AXA has its own CDRI response, which is MicroBiz Protek. In Partnership with GIZ Philippines and Cebuana Lhuillier, MicroBiz Protek was specifically made for MSMEs to help them prepare for and recover from disasters. MicroBiz Protek can provide cash assistance to MSMEs if they are affected by natural disasters.
Apart from the enterprise, MicroBiz Protek can also protect business owners by giving them coverage against burglary and robbery, accidental death, permanent disablement, and accidental medical reimbursement, and access to AXA’s Rescue Line. Villanueva said that efforts like this, alongside their partners, drive AXA Philippines closer to its mission of protecting the vulnerable sector.
"We really cannot stop natural disasters, but we can arm ourselves with knowledge. There could never be enough disaster preparedness as life and livelihood really depend on this. At AXA, we take CDRI seriously, not only through active discussions but also through actions," she said.
Aside from Villanueva, Mr. Yoshiki Hiruma, the Vice-President of Sustainability Management and Director of Enterprise Resilience Linked Loan Program at the Development Bank of Japan, also joined the webinar as a guest speaker.
For more information, visit www.axa.com.ph.
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