PCIC unveils weather-based insurance to boost farm resilience

In a move poised to redefine agricultural risk management in the Philippines, the Philippine Crop Insurance Corp. (PCIC) is launching a pioneering parametric insurance program designed to accelerate the release of claims for rice farmers affected by severe weather disturbances.

The program leverages remote sensing and automated data analysis to replace time-consuming field inspections, a shift expected to significantly improve the speed and transparency of disaster-related payouts.

PCIC President Jovy Bernabe said the initiative introduces a streamlined system that uses satellite imagery and weather data – such as typhoon path and wind velocity – to determine the extent of damage and calculate payouts within just three to five days after a storm.

“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 parametric model integrates georeferenced farm data with real-time satellite validation of crop presence. This enables PCIC to determine, almost instantly, whether a particular area has sustained damage severe enough to merit compensation.

Bernabe emphasized that the program is designed to work alongside traditional indemnity-based insurance. The hybrid approach, he said, is aimed at reducing administrative bottlenecks, improving transparency, and enhancing the overall efficiency of disaster response mechanisms for the agriculture sector.

Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. expressed full support for the rollout, citing its potential to mitigate financial risks faced by farmers and promote continued productivity amid increasing climate volatility.

“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,” Secretary Tiu Laurel said.

PCIC, a government-owned and controlled corporation under the DA, has made significant strides in recent years, including the deployment of its georeferencing system and GIS training in partnership with the Philippine Space Agency and the Philippine Rice Research Institute.

A pilot test of the parametric insurance product is set for the 2025 wet season cropping. If successful, it could mark a turning point in the country's use of science and automation in agricultural financing.