The Philippine Crop Insurance Corp. (PCIC) is set to launch a pioneering parametric insurance program aimed at expediting claims processing for rice farmers affected by extreme weather.
PCIC president Jovy Bernabe said the new insurance model utilizes remote sensing technologies and automated triggers, such as wind velocity during typhoons, to determine payouts. This eliminates the need for 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,” Bernabe said.
The system integrates georeferenced farm data, collected by PCIC at planting, with satellite imagery to verify crop presence.
Weather data, specifically on typhoon paths and wind intensity, is analyzed to identify affected areas. Compensation will be calculated within three to five days after a storm’s exit using predefined damage and indemnity metrics.
Bernabe said parametric insurance is intended to complement, not replace, traditional indemnity-based systems. The hybrid model is expected to enhance transparency, reduce processing delays and strengthen the government’s disaster response framework, he said.
Agriculture Secretary Francisco Tiu Laurel cited the importance of timely claims: “Timely release of insurance claims keeps farmers engaged in production. It provides not just financial support, but a real lifeline during times of distress,” he said.
A pilot run of the parametric insurance scheme is scheduled for the 2025 wet season cropping.
