July 24, 2024

Philippine Crop Insurance urged to create more affordable insurance products for livestock producers

Philippine Agriculture Secretary Francisco P. Tiu Laurel Jr. urged the Philippine Crop Insurance Corp. (PCIC) to modernise its operations and develop more affordable insurance products for farmers, fisherfolk, and livestock raisers.

PCIC, which recently returned to the Philippines' Department of Agriculture's (DA) oversight, is encouraged to digitalise its processes, upgrade technologies, and create insurance products that offer improved protection for its clients, according to Tiu Laurel.

PCIC plays a significant role in promoting food production by providing insurance protection against natural disasters, diseases, pest infestations, and other risks for farmers, fishermen, and livestock raisers.

With an annual budget of ₱4.5 billion (US$77 million) from the General Appropriations Act, PCIC primarily focuses on indemnifying insurance claims. Last year, the agency serviced 744,000 farmer claims and aims to expand coverage to 1.2 million farmers, 21,000 livestock raisers, and fisheries stakeholders this year.

Tiu Laurel emphasised the need for PCIC to adopt advanced crop insurance models similar to those in Japan, Taiwan, Thailand, and Vietnam to enhance indemnification processes.

"We're doing it the way we've been doing it for X number of years, it's time for PCIC to level up Tiu Laurel said during a meeting with PCIC executives.

Beyond risk protection, Tiu Laurel noted the potential for insurance to serve as collateral for accessing financial services from banks and other institutions. He also suggested that PCIC expands its reinsurance strategies to manage the agency's risk profile more effectively. This directive is part of the DA's commitment to modernising agricultural practices and ensuring that PCIC plays a critical role in safeguarding the livelihoods of rural communities across the Philippines.

- Insurance Business