PCIC told to modernize insurance operations

MANILA, Philippines — Agriculture Secretary Francisco Tiu Laurel Jr. has ordered the Philippine Crop Insurance Corp. (PCIC) to modernize its operations and offer more affordable products to farmers and fisherfolk.

Tiu Laurel said state-run PCIC, which was recently returned to the Department of Agriculture portfolio, must digitalize its processes and upgrade its technologies to provide better protection to its clientele.

“We’re doing it the way we’ve been doing it for X number of years, it’s time for PCIC to level up,” the agriculture chief told PCIC executives in a recent meeting.

He noted that the state crop insurer plays a “crucial” role in boosting food production through providing insurance protection to farmers, fishermen and livestock raisers against natural calamities, diseases, pest infestations and other risks.

Tiu Laurel said the PCIC must “evolve” from its traditional practices and should adopt advanced crop insurance models similar to neighboring countries such as Japan, Taiwan, Thailand and Vietnam.

“These improvements aim to enhance indemnification processes which currently rank among the most substantial in the region,” he said.

The agriculture chief added that PCIC can also go beyond providing risk protection for farmers and fisherfolk.

Tiu Laurel pointed out that insurance protection could also serve as collaterals of farmers and fisherfolk in accessing financial services from banks and other financial institutions.

He recommended widening the reinsurance strategies of the attached agency of the DA “to better manage the agency’s risk profile effectively.”

The PCIC has an annual budget of P4.5 billion that is allocated for indemnification of insurance claims. Last year, the agency serviced 744,000 farmers. This year the state crop insurer eyes to cover 1.2 million farmers, 21,000 livestock raisers and fisherfolk. — Romina Cabrera