Global reinsurance giants Munich Re and Swiss Re are reportedly interested in investing in the Philippines crop programme, but changes are required to the charter of the Philippines Crop Insurance Corporation (PCIC) before this can happen, according to reports.
According to industry reports, Bohol Rep. and former agriculture secretary, Arthur Yap, both Munich Re and Swiss Re have shown interest in investing in the region in order to provide farmers with much-needed protection against weather and climate-related events.
Philstar reports that Yap, while speaking on the sidelines of the Sustainable Agriculture Forum of the European Chamber of Commerce of the Philippines recently, underlined the interest shown by global reinsurance companies.
However, under its current mandate, PCIC isn’t permitted to participate in reinsurance, suggesting the firm’s charter needs to be amended before reinsurance companies can properly enter the region’s crop market.
“We need to change the charter and allow them to reinsure. Give budget to the PCIC and to make sure that money is only used for that. We will design programs where the recapitalization of the agency will really go the reinsurance of products.
“Once we have the reinsurance, PCIC can already partner with the Europeans and that can be used to give to our local farmers,” said Yap.
Currently, Yap has filed a house bill which mandates PCIC to provide index-based insurance solutions and to allow it to engage in reinsurance business, and reportedly is hopeful the bill can be passed in 2018.
“The House is very much ready and supportive. We will be asking support from senators as well. It’s a new discussion here, but it’s not a new discussion in the world and we just need to convince some more senators to support the measure,” continued Yap.
Enabling global reinsurers such as Swiss Re and Munich Re to increase their participation in the country’s crop market would likely provide farmers with greater coverage options, that are potentially more effective and affordable. Furthermore, it will enable more and more farmers with access to extremely valuable insurance protection, ultimately improving the resilience of the Philippines against weather and climate-related events.