THE Philippine Crop Insurance Corp. (PCIC) announced it recently launched a parametric insurance program its officials believe will expedite claims settlement for rice farmers affected by extreme weather conditions.
PCIC President Jovito C. Bernabe said the 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,” Bernabe was quoted as saying in a statement.
The government-owned and -controlled corporation explained that under this new system, georeferenced farm data collected by the 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, it added.
Once a typhoon exits the country, the system computes compensation within three to five days using pre-established damage and indemnity factors.
According to Bernabe, parametric insurance complements traditional indemnity-based systems. This hybrid approach enhances transparency, reduces delays, and offers a “more efficient” disaster response framework, he added
For his part, Agriculture Secretary Francisco Tiu Laurel Jr. said the PCIC’s initiative will significantly reduce farmers’ losses and fast-track 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,” Laurel said.
The agency noted that a pilot test of this parametric insurance program is 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.”
According to the PCIC, it has also successfully deployed its georeferencing system and geographic information system training with the Philippine Space Agency and the Philippine Rice Research Institute
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