The Philippine Crop Insurance Corp. (PCIC) is rolling out a pioneering parametric insurance program, with enhanced transparency and efficient response, to speed up claims settlement for rice farmers affected by extreme weather.
PCIC President Jovy Bernabe said the innovative insurance model uses remote sensing technologies to automatically trigger payouts based on measurable conditions—such as wind velocity during typhoons—rather than relying on time-consuming field inspections.
“This innovation will usher in a faster and more objective claims settlement system that not only protects farmers during climate-related calamities but also strengthens the resilience and sustainability of our agricultural sector for years to come,” said Bernabe.
Under the new system, georeferenced farm data collected by PCIC is integrated with satellite imagery to verify crop presence after planting. Weather data on typhoon paths and wind intensity are then used to determine affected areas. Once a typhoon exits, the system computes compensation within three to five days, using pre-established damage and indemnity factors.
Bernabe said parametric insurance complements, rather than replaces, traditional indemnity-based systems.
He said this hybrid approach enhances transparency, reduces delays, and offers a more efficient disaster response framework.
Agriculture Secretary Francisco P. Tiu Laurel Jr. lauded the PCIC’s initiative, emphasizing that the new system will significantly reduce farmers’ losses and accelerate their recovery from weather-related disruptions.
“Timely release of insurance claims keeps farmers engaged in production. It provides not just financial support, but a real lifeline during times of distress. This is in line with the vision of President Ferdinand Marcos Jr. of a food-secure nation and a resilient, modernized farming sector,” the DA chief said.
PCIC, an agency under the Department of Agriculture, has already achieved several milestones, including the successful deployment of the PCIC Georeferencing system and Geographic Information System training with the Philippine Space Agency and Philippine Rice Research Institute.
A pilot test of this parametric insurance product is now being readied for the 2025 wet season cropping. By fusing data, science, and automation, PCIC is building a cutting-edge insurance model that puts Filipino farmers at the center—ensuring they receive swift and fair support when it matters most.
