Future-proofing your business
2020 equaled
the hottest temperature in global recorded history and the ocean’s temperature
likewise broke existing records.
The past
five years have been the hottest consecutive years in record history, and the
rate of heating is eight times higher than any given year.
Experts say
that warmer seas provide more energy for storms. Last year, a record 29
tropical storms occurred in the Atlantic Ocean and in the Philippines, three
tropical storms in the last quarter of 2020 dampened an already lethargic year
principally due to the Coronavirus disease 2019 (Covid19) pandemic.
And the
pandemic brought the country’s economy to its knees since the second world war.
That means heavier
and more frequent rainfall and tropical cyclones in the country. Floods would
bring damage to businesses, manufacturing, crops, homes and lives.
Heat waves
will result in drought, crop damage, forest fires and business disruptions of
all sorts.
Business
Protect is an insurance product that lowers the risk on businesses especially for
small and medium enterprises (SMEs), still coping with the negative effects of
the pandemic. It was introduced by Malayan Insurance Co. Inc.
Coping with
the pandemic has brought out the best from businesses, but climate change
remains a constant challenge.
Protecting
business through insurance against floods, fire, theft and the like, is one
mitigating measure versus the uncertainties brought about by the pandemic and
climate change.
In 2010, the Philippines adopted the
National Framework Strategy on Climate Change (NFSCC) which was translated to
the government’s plan now known as the National Climate Change Action Plan (NCCAP).
The strategy lists key programs for adaptation and mitigation from 2011 to
2028.
Based on the action plan, climate projections
done by the Philippine Atmospheric, Geophysical and Astronomical Services
Administration (PAGASA) indicate that all areas of the Philippines will get warmer,
with largest increase in temperatures in the summer months of March, April and
May (MAM) for 2020 and 2050. Mean temperatures in the country are expected to rise
by 0.9 °C to 1.1 °C in 2020 and by 1.8 °C to 2.2 °C in 2050.
Malayan Insurance is the leading non-life insurance company in the country and is a member of the Yuchengco Group of Companies (YGC).