THE Philippine Crop Insurance Corp. (PCIC) said it enrolled more than 11,000 municipal fisherfolk in its weather index-based parametric insurance program and is looking to expand the initiative to more coastal communities after its first year.
The program, launched in November in partnership with the Bureau of Fisheries and Aquatic Resources (BFAR) and Rare Philippines, provides insurance protection to small-scale fishers whose livelihoods are often disrupted by hazardous weather conditions.
Parametric insurance releases payouts to policyholders once weather indicators reach agreed-upon triggers, with claims not delayed by the traditional damage inspection process.
Arvin Jasper R. Adan, acting manager of PCIC鈥檚 Actuarial Research and Product Valuation Department, said the program鈥檚 initial rollout has a target of 14,000 sign-ups.
鈥淭he policyholders are between 11,000 and 12,000 fisherfolk registered under BFAR鈥檚 FishR system,鈥 Mr. Adan told reporters. 鈥淭he program is currently available in Occidental Mindoro, Antique, Cebu, Surigao del Norte, and Negros Oriental.鈥
The PCIC said insurance premiums are paid for by BFAR, making the coverage effectively free for participating fisherfolk. Mr. Adan said the bureau allocated around P10 million for the program.
鈥淓ach insured fisher is entitled to an indemnity of about $100, or roughly P5,000, per policy cycle. The coverage period for the insurance is one year,鈥 he said.
鈥淔or the project, we have three parameters 鈥 wind speed, wave height, and rainfall. It was determined using 30 years of historical data,鈥 Mr. Adan said.
PCIC said the parametric design enables faster and more transparent compensation when hazardous weather prevents sea voyages.
鈥淧ayments are released to digital wallets or checks, allowing immediate relief without lengthy claims investigations,鈥 the PCIC has said.
It said no payouts have been triggered since the program鈥檚 launch, as recent weather events have not met the thresholds required for indemnity.
鈥淎ll three parameters must reach the trigger level. It cannot be just high waves 鈥 the payout requires a combination of all three indicators. That is why, as of now, there have still been no payouts,鈥 Mr. Adan said.
The PCIC said the program has only been running for a few months, and severe storms have yet to occur during the period.
The PCIC also said it is open to reviewing and possibly adjusting the trigger levels based on the results of the program鈥檚 initial run. 鈥 Vonn Andrei E. Villamiel
