LATEST PUBLICATIONS
DRN Vol. 39 No.3
'Reexamine SHS Programs Employment and Entrepreneurial Objectives'
WP-2012-07
Regulatory Impact Assessment Adoption Determinants: A Diagnostic Framework
WP-2012-06
Exploring Responses to the Employment Impact of Excise Tax Reform: The Case of the Philippine Tobacco Industry
WP-2012-05
Mapping Out Employment Opportunities in the Cultural Heritage Sector A Strategic Framework

LATEST AV MATERIALS
PIDS WB 2021-0905
Annual Public Policy Conference Webinar 4: Robust and Healthy Workforce and Closing Program
PIDS WB 2021-0904
Annual Public Policy Conference Webinar 3: Green And Inclusive Recovery
PIDS WB 2021-0903
Annual Public Policy Conference Webinar 2: Ethical Business
PIDS WB 2021-0902
Opening Program and Annual Public Policy Conference Webinar 1: Resetting Capitalism
Publication Detail
DP 2017-07: Evaluation of the Financial Sustainability of the Agricultural Insurance Programs of the Philippine Crop Insurance Corporation

The Philippine Crop Insurance Corporation (PCIC) started implementing the Agriculture Insurance Program (AIP) of the Philippines in 1981. Since then, the AIP has expanded its coverage from palay and corn to other crops and to other services including life and accidental death insurance to farmers and their families. As with most AIPs in other countries, the program provides premium subsidy that averaged 61 percent of gross premiums from 1981 to 2014 for palay and corn farmers. The paper finds that from 1987 to 2013, the penetration rate for the AIP has not been impressive: 4.5 percent for palay and 0.9 percent for corn; some regions have been underserved; and operating costs had been high with a historical average of 50 percent of premiums. Moreover, the AIP incurred an average loss ratio of 61 percent from 1981 to 2013 and the insurance coverage share of palay and corn farmers has shrunk over the years with the biggest share now going to Term Insurance Packages. While clear improvements have been incorporated in the program, such as the subsidized coverage of the Registry System for Basic Sectors in Agriculture beneficiaries and the streamlining of PCIC operations, the paper notes various areas of concern that need to be addressed toward improving the AIP: increasing penetration rate and expanding the coverage of marginalized farmers, rationalizing the subsidized coverage of even big-time farmers; extending coverage to underserved regions especially those prone to typhoons and flooding; introducing innovative insurance products that can reduce operating costs; reviewing the premium and premium subsidy structure including differentials across regions; irregular or unsustained actuarial inputs in assessing the actuarial solvency of the AIP; and the need for regulatory oversight on PCIC insurance operations.

Philippine Institute for Development Studies
Authors Keywords
Virola, Romulo A.; Philippines; farmers; Philippine Crop Insurance Corporation; Agricultural Insurance Program; PCIC; premium rates; claims; loss ratio; penetration rate; insurance coverage;
Download PDF Number of Downloads
Published in 2017 and available in the PIDS Library or Downloaded 2,633 times since April 06, 2017
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.