About the Facility

The Philippine Crop Insurance Corporation (PCIC) is the primary provider of agricultural insurance in the Philippines, safeguarding the interests of farmers against losses due to natural disasters, pests, and diseases. Despite substantial growth in coverage over the past decade, many challenges remain, including low penetration rates, limited product diversity, and the need for more tailored solutions that address the specific risks of different agricultural sectors and regions. The proposed Agri-Insurance Business Incubator Facility seeks to bridge these gaps by incubating innovative insurance products and models that can better meet the evolving needs of the agricultural community.

                  Furthermore, the establishment of an incubator is essential to catalyzing innovation within the agricultural insurance sector. Current offerings often do not meet the nuanced needs of smallholder farmers or the complexities of emerging agricultural practices and technologies. By fostering a collaborative environment that brings together experts in technology, finance, and agriculture, the incubator will spearhead the development of solutions that are both innovative and practical, thereby transforming the landscape of agricultural insurance in the Philippines.

 

Objectives:

The primary objective of the Agri-Insurance Business Incubator Facility is to create a dynamic environment where new ideas can be tested and refined to produce market-ready agricultural insurance products. Secondary objectives include:

1. Enhancing the range and effectiveness of PCIC's insurance offerings.

2. Increasing the adoption of agricultural insurance across the Philippines.

3. Building technical and business capacity within the agricultural insurance industry.

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Key stakeholders include:

1. Government Agencies: Including the Department of Agriculture (and its attached agencies like Philippine Coconut Authority, Bureau of Animal Industry, Bureau of Plant Industry, Bureau of Fisheries and Aquatic Resources, Sugar Regulatory Administration, Philippine Rice Research Institute, Philippine Carabao Center, Fiber Industry Development Authority etc.; DOST – Philippine Atmospheric, Geophysical and Astronomical Services Administration; Office of the President – Philippine Space Agency (PhilSA), Philippine Statistics Agency (PSA); Insurance Commission, National Reinsurance Corporation of the Philippines (Nat Re) etc.

2. Financial Institutions: Banks and microfinance institutions that will gain from the reduced risk of lending to insured farmers, Land Bank of the Philippines, Development Bank of Philippines, Philippine Insurers and Reinsurers Association (PIRA)

3. Farmers and Farmer Cooperatives: Direct beneficiaries through access to better-tailored insurance products.

4. Agri-businesses: Which can achieve more stable supply chains through better-insured suppliers.

 

Each stakeholder group will play a crucial role in supporting and benefiting from the incubator’s activities, ensuring a broad base of engagement and benefit.

 

Program Structure

The program will operate in phases:

1. Ideation and Concept Development: Insurance companies, PIRA, government agencies, private sector, entrepreneurs and innovators will be invited to submit proposals for new insurance products.

2. Prototyping and Testing: Selected ideas will be developed into prototypes and tested in controlled environments.

3. Pilot and Scale: Successful models will be piloted in select regions before a broader rollout.

 

Support services will include mentorship from industry experts, access to data and analytical tools, and initial funding for pilot projects. Selection criteria will focus on feasibility, scalability, and potential impact.

 

The Agri-Insurance Business Incubator Facility represents a strategic investment in the future of Philippine agriculture. By embracing innovation, we can significantly enhance the effectiveness of agricultural insurance, providing a critical safety net for the nation's farmers and ensuring the sector's robust growth and sustainability.