THE Philippine Crop Insurance Corp. (PCIC) and the International Rice Research Institute (IRRI) launched a satellite-aided crop insurance system for rice farmers, which will facilitate the issuance of insurance policies by doing away with the need for on-site assessments of farmland.
The new system initially targets 1,000 farmers in Isabela and Camarines Sur, according to a memorandum of agreement signed by the PCIC, IRRI, the PAGASA government weather service, and the Alliance of Bioversity International.
Initial beneficiaries are farmers from Isabela and Camarines Sur provinces, with expansion to proceed nationwide following a positive outcome from the pilot.
IRRI noted that traditional crop insurance has not fully addressed farmers’ needs, citing slow claims processing, subjective damage assessments, and limited coverage.
“Crop insurance is seen as one of the mechanisms to cushion the impact of climate shocks on the already vulnerable agriculture sector,” it said.
In 2024, agricultural losses due to natural disasters amounted to P57.8 billion. The Philippines is visited by an average of 20 typhoons every year.
The program will use an area-based yield index insurance developed by IRRI, PCIC, and the Philippine Rice Research Institute “to provide an evidence-based reference for the insurance package,” instead of relying solely on on-site damage assessments.
“This type of crop insurance offers a comprehensive range of risks, including floods, droughts, saltwater intrusion, and pests and diseases,” IRRI said. — Kyle Aristophere T. Atienza