Philippines, FAO push insurance access for small fishing vessels

The country offers subsidies, flexible payment schemes, and simplified products.

Less than 5% of small-scale vessels globally are insured, despite making up more than half of the world’s fishing fleet. 

Efforts to boost insurance coverage for small fishing vessels are gaining momentum, with the Philippine Crop Insurance Corporation (PCIC) and the UN Food and Agriculture Organisation (FAO) addressing key barriers in the sector.

Presented during a May International Union of Marine Insurance (IUMI) webinar, the PCIC cited affordability issues, limited awareness, complex products, and logistical challenges as major hurdles.

To tackle these, PCIC is offering subsidies, flexible payment schemes, simplified products, and partnerships with local governments and fisherfolk groups. 

Its average loss ratio from 2020 to 2024 stood at 0.21%, suggesting manageable risk.

The FAO, meanwhile, released new guidelines for vessel safety inspections and insurance valuation, including fast-track assessments for low-risk boats and the use of digital tools.

These are expected to support insurers in developing countries and attract more private sector involvement.