PCIC seeking flood data partners for parametric insurance scheme
THE Philippine Crop Insurance Corp. (PCIC) is looking for partners to provide reliable flood-monitoring data to support its recently launched parametric insurance program for rice farmers.
PCIC President Jovy C. Bernabe said the parametric insurance is currently limited to wind speed indicators, as the agency has yet to integrate flooding triggers due to the lack of reliable satellite-based flood measurement data.
“We’re still developing flood (insurance) because we don’t have the capacity yet on how to measure flooding through satellite or records from the (government weather service) alone,” he told reporters.
The PCIC said it has begun discussions with the Philippine Rice Research Institute (PhilRice) and is open to partnering with private entities to develop the capability.
“If PhilRice can do it, we will use that. If not, we may have to tap private providers and subscribe to their data,” Mr. Bernabe said.
Launched last year, parametric insurance program allows automatic payouts based on measurable weather indices such as wind speed and flooding, which serve as proxies for actual crop damage.
Under the program, farms are georeferenced and matched with weather data, allowing compensation to be computed once a typhoon passes through affected areas.
“When a typhoon passes, payouts can be made immediately. There is no need for adjustments or for personnel to conduct on-site inspections,” Mr. Bernabe said.
The program initially covers rice farmers, with corn expected to be included later this year, according to the PCIC.
Meanwhile, the insurer said it continues to work toward expediting the insurance payout process. Mr. Bernabe said PCIC is currently able to process about 80% to 90% of insurance claims within 20 working days.
“It’s not 100% because there are still challenges. For example, when a typhoon affects a very wide area, processing can sometimes be extended. But in 2025, we were able to compute about 80% or even more claims within 20 working days,” he said. — Vonn Andrei E. Villamiel
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