Change in PCIC charter pushed

A lawmaker is pushing for the revision of the charter of the state-owned Philippine Crop Insurance Corp. to allow it to create partnerships with private reinsurance companies and offer index-based insurance coverage.

During the European Chamber of Commerce Sustainable Agriculture Forum, Bohol Rep. Arthur Yap said he had filed House Bill 3560, which would also seek additional funding source for PCIC and allow it to impose heavier penalties on spurious claimants.

PCIC offer loans to farmers and fisherfolk affected by typhoons and other natural disasters, provided they meet the program’s eligibility requirements based on the farmer’s land hectare and financial condition, among others.

“We cannot treat crop insurance as if it’s a car insurance that you would only call when you get into an accident. Since weather affects crops as they are growing, farmers should be paid the moment there are breaches in the indices of temperature, wind speed, level of rain, drought and many others,” explained Yap. “We need to change the insurance system.”

He added that two billion-dollar European reinsurance companies already expressed interest to invest in the country given that a financial system for agriculture could create an environment feasible for investment.

Both Munich Reinsurance Co. and Swiss Reinsurance Co. Ltd. offered typhoon coverage insurance programs in the country to fill the gap on the latter’s insurance needs.

“These companies want partners, that’s why we want to change PCIC’s mandate and allow it to reinsure. Once PCIC has reinsurance products, it can now partner up with these European insurers and we could use these funds to aid the farmers,” Yap said.

Yap noted that these partnerships could expand PCIC’s insurance coverage to high-value commercial crops, livestock, aquaculture and fishery products, agroforestry crops and forest plantations.

The bill also wanted to increase PCIC’s authorized capital stock to P10 billion to accommodate more beneficiaries.

“The House is very supportive. We’re going to be asking the support of [Senators] Cynthia Villar, Win Gatchalian, Grace Poe and Miguel Zubiri who himself is an agriculturist,” Yap added.

The PCIC, created during the Marcos regime, is a government-owned corporation tasked to implement the Department of Agriculture’s insurance program.

Yap said he was hopeful that the bill would be passed by next year.