Philippines allows non-life insurers to offer agriculture cover

Agricultural insurance has a low penetration rate in the country.

The Philippine government will now allow non-life insurance firms to offer agriculture insurance in a bid to increase its penetration rate amongst farmers.

The Insurance Commission (IC) has approved the guidelines for the adoption of a regulatory sandbox framework.

Under the IC’s Circular Letter 2021-60, non-life insurers can provide agriculture insurance either independently or in collaboration with the state-owned Philippine Crop lnsurance Corporation (PCIC). They may also collaborate with national and international public and private sector insurers, reinsurers, technology providers and multilateral agencies.

Agriculture insurance in the Philippines has a ‘low’ penetration rate amongst farmers with only 8%-14% for rice and only 2%-6% for corn in 2013 to 2017.