Manila: The Department of Agriculture (DA)-Philippine Crop Insurance Corporation (PCIC) announced plans to launch a parametric insurance program designed to expedite insurance claims for rice farmers. The program aims to innovate the current system, providing quicker financial support during extreme weather events.

According to Philippines News Agency, Agriculture Secretary Francisco Tiu Laurel Jr. highlighted that the new system would help reduce losses and accelerate recovery for local farmers. He emphasized that timely insurance claims are crucial for keeping farmers engaged in production, offering essential support during challenging times. This initiative aligns with President Ferdinand R. Marcos Jr.'s vision of achieving a food-secure nation and modernizing the farming sector.

The PCIC plans to implement a cutting-edge insurance model that will compute compensation within three to five days after a storm passes. PCIC President Jovy Bernabe noted that the new program will complement, not replace, the existing indemnity-based insurance and is slated for a pilot launch during the upcoming wet harvest season between September and October.

The parametric insurance program will leverage remote sensing technologies instead of traditional, time-consuming field inspections to measure wind velocity during typhoons. It will integrate georeferenced farm data with satellite imagery for verification, utilizing available weather information on typhoon direction and intensity to assess affected areas.

The pilot test for this innovative system is scheduled for rollout during the wet harvest season, typically starting from mid-September to October.