News Details

PCIC to Launch Faster, Technology-Driven Insurance Payout System for Rice Farmers

NPO

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July 17, 2025

MANILA – The Department of Agriculture–Philippine Crop Insurance Corporation (DA-PCIC) announced Thursday that it is preparing to launch a parametric insurance program aimed at streamlining and accelerating insurance payouts for rice farmers affected by extreme weather events.

In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. highlighted the importance of the new system in mitigating farmers’ losses and supporting faster recovery in the aftermath of typhoons and other natural disasters.

“The timely release of insurance claims keeps farmers engaged in production. It provides not just financial assistance but serves as a vital lifeline during times of distress,” Laurel said. “This is aligned with President Ferdinand R. Marcos Jr.’s vision of building a food-secure nation and a resilient, modernized farming sector.”

Under the new system, the PCIC will utilize a parametric insurance model capable of computing payouts within three to five days after a storm exits. This approach significantly reduces waiting time compared to traditional claims processes.

PCIC President Jovy Bernabe clarified that this new scheme will complement, not replace, the existing indemnity-based insurance program. The pilot implementation is scheduled for the upcoming wet harvest season from September to October 2025.

“This innovation will usher in a faster and more objective claims settlement system. Beyond protecting farmers from climate-related losses, it will also enhance the long-term resilience and sustainability of our agriculture sector,” Bernabe said.

Unlike conventional claims processes that rely on lengthy field inspections, the parametric system will leverage remote sensing technologies to measure wind speeds during typhoons. It will also integrate georeferenced farm data, satellite imagery, and weather information to objectively verify and assess affected areas.

The pilot test of this system is expected to be operational during the wet harvest season, typically starting mid-September through October.

NPO News Team

PNA-PR