Philippine agriculture secretary urges crop insurance overhaul

Philippine agriculture secretary urges crop insurance overhaul | Insurance Business Asia

Insurance News

Modernisation aims to boost farmer protection

Insurance News

By
Roxanne Libatique

Philippine Agriculture Secretary Francisco P. Tiu Laurel Jr. has 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 Department of Agriculture’s 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 P4.5 billion 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.

Importance of modernising PCIC’s practices

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 expand its reinsurance strategies to manage the agency’s risk profile more effectively.

This directive is part of the Department of Agriculture’s commitment to modernising agricultural practices and ensuring that PCIC plays a critical role in safeguarding the livelihoods of rural communities across the Philippines.

Filipinos increasing insurance coverage amid rising costs

In other news from the Philippines, a recent survey by Manulife Asia revealed that nearly 80% of Filipinos plan to increase their insurance coverage and benefits in response to rising costs of goods and services, including healthcare.

The Manulife Asia Care Survey 2024, which surveyed 1,050 Filipinos, found that 78% of respondents believe an increase in insurance coverage is necessary due to rising hospitalisation and medical expenses.

Additionally, 76% of respondents feel their employer-provided health benefits are insufficient. As a result, 78% think they need supplemental retirement and pension benefits, while 58% reported delaying retirement plans due to family financial obligations.

Interestingly, 48% of participants view their children as an alternative to a pension, reflecting a shift from traditional views where children are expected to support their parents in old age.

To manage rising medical costs, 41% of respondents use government-provided healthcare services, and 51% opt for generic or non-branded medicines. Improvements in diet and daily exercise were also reported as cost-saving measures by some participants.