Sompo launches typhoon insurance for Philippines

PGA Sompo Japan Insurance, the Philippines-based subsidiary of Sompo Japan Insurance, has launched an insurance product to mitigate damages caused by typhoons.

The insurance will initially be sold to banana producers in Mindanoa, followed by other agricultural producers.

According to the company, Typhoon Guard Insurance is an index insurance which pays the insured the predetermined insured amount if the centre of the typhoon passes through the predetermined area of coverage.

The company added that it is the first in the Philippine insurance industry to provide a weather index insurance that uses typhoon as the trigger for the payment of insured amount.