CARD Pioneer partners with PCIC to provide insurance to farmers

CARD Pioneer Microinsurance Inc. (CPMI) said Tuesday it partnered with state-run Philippine Crop Insurance Corp. (PCIC) to provide insurance protection to farmers against losses from natural calamities, plant diseases, and pest infestations.

In a statement, CPMI said its partnership with PCIC is supported by the Asian Development Bank (ADB) under its Financial Inclusion Framework Strengthening technical assistance project.

The company added its initiative also marks the Philippines’ first public-private partnership aimed at bridging the insurance gap and contributing to the sustainable development of agricultural insurance of the country.

Highlighting the need to provide agricultural insurance, CPMI cited data from the Department of Agriculture which showed that typhoons in 2020 have wiped out P14.25 billion in agricultural goods.

The recent typhoon Odette in 2021, meanwhile, destroyed P13.3 billion in agricultural damage alone.

“Almost 24%, or roughly over 25 million of the Philippines population are engaged in agriculture – proof that we have no shortage of natural resources suitable for agriculture. But we also know that exposure to natural calamities is a constant threat that continues to cause devastating damage to their livelihood,” said Pioneer Inc. president and CEO Lorenzo Chan Jr.

“Our initiative with PCIC aims to address that by helping smallholder farmers restart as typhoons, pests and plant diseases ravage their crops,” said Chan.

Under the partnership, CPMI and PCIC will share risks underwritten for each smallholder farmer insurance policy with the former as the lead insurer.

The co-insurance partnership will focus on insuring high-value crops in selected regions where the current penetration of PCIC’s agriculture insurance products is limited.

PCIC, likewise, will provide capacity-building support to CPMI on various aspects of agriculture insurance, such as underwriting, policy administration, actuarial matters, and claims management.

“Offering comprehensive insurance packages and services could help our farmers understand the importance of insurance and other financial instrumentalities in securing their future and of their bodies. With this coinsurance agreement between the PCIC and CPMI, I hope that our local farmers and agri-entrepreneurs could reap more benefits and ensure the safety and sustainability of their livelihood,” said Insurance Commissioner Dennis Funa.

In 2021, CPMI said it achieved over 11 million enrollments from its microinsurance programs.

CPMI is a joint-venture between microinsurance provider CARD MRI and Pioneer, one of the country’s leading insurance groups.—AOL, GMA News