House Committee on Ways and Means chairperson and Albay Rep. Joey Salceda has filed a measure expanding the insurance for crops and livestock to protect farmers.
Salceda said his proposed Expanded Agricultural Insurance Act will protect farmers from the African Swine Fever (ASF) and crop infestations such as the tungro disease.
Under the proposal, Philippine Crop Insurance Corporation (PCIC) will be allowed to offer reinsurance programs to private sector insurers and expands its portfolio in livestock insurance.
“This bill follows a recommendation from a 2019 discussion paper by the Philippine Institute of Development Studies (PIDS), titled “Towards a More Inclusive Agricultural Insurance Program,” which found that agricultural insurance penetration rates in the Philippines remains in need of improvement, with programs focusing on mandatory insurance coverage,” Salceda said.
In 2018, only 13.33% of the total agricultural land cultivated in the Philippines was insured with the PCIC.
Reinsurance allows primary insurers to hedge some of the risks they incur against another insurance product.
“By mitigating some of the risks to primary agricultural insurance, the PCIC will be able to lower the costs of private agricultural insurance,” Salceda added.
Salceda also said that his proposal to establish the Virology Institute of the Philippines will be crucial in protecting the agricultural sector from virus-related risks such as ASF and tungro.
“Many of the problems our agriculture sector is facing comes from neglecting our biosafety. Viruses have always been a problem in agriculture. We should invest in protecting ourselves and our food from this threat,” Salceda explained.
Kontra ASF, peste: Joey Salceda seeks expanded insurance for crops, livestock
