How the insurance industry can contribute to food security

By Michael F. Rellosa

Why does the Philippines import food when we can grow it?

The Philippines is a beautiful country with rich soil, long coastlines, and a strong tradition in farming and fishing. But despite all these natural gifts, we still rely heavily on importing basic food items like rice, fish, pork, poultry — and even salt. It seems surprising, right?

But when we look closer, the reasons start to make sense. Many farmers and fisherfolk still work on a small scale, just enough to feed their families. Access to tools, credit and protection from losses isn't always easy to come by. And as weather becomes more unpredictable due to climate change, it's getting harder for rural communities to recover when things go wrong.

One way to help is through agricultural insurance — a safety net for those who grow our food. Right now, the government, through the Philippine Crop Insurance Corp. (PCIC), provides crop insurance to farmers. It plays an important role in supporting our agricultural workers. But with so many challenges today, there's room to explore how more partners — including private insurance companies — can join the effort and offer new solutions.

Reimagining insurance for farmers and fisherfolk

Most of today's crop insurance is what we call "indemnity-based." It means that someone goes to the farm, checks the damage and then processes a claim. While this helps, it can take time and cost a lot to manage. For many small farmers, waiting weeks or months for help just isn't practical.

That's where index-based insurance comes in. Instead of checking each farm, this type of insurance uses data — like rainfall levels or average harvests in a region — to decide when and how much to pay. If a drought or storm hits, affected farmers receive support automatically. It's faster, fairer and can reach more people, especially those in remote areas.

And it's not just for crops. Imagine insurance that covers livestock, fish farms or even the journey from harvest to market. This kind of protection could help reduce losses, lower costs and make local food more affordable. There's also a growing idea of bundled insurance — packages that include not just agriculture coverage, but also health, life or property protection, all tailored to the needs of rural households.

Working together for better results

For these kinds of innovations to work, partnerships are key. The government has already laid the foundation by providing insurance through PCIC and offering premium subsidies to support farmers. What if private companies could also offer their own insurance options — with the same kind of government support and standards? This approach has worked in other countries and could help bring more choices and better coverage to Filipinos.

Technology can also make a big difference. Using satellite data, mobile phones and digital payments, insurers can offer services faster and reach areas that were once hard to access. Farmers could get weather alerts, submit claims with a few clicks and receive payments directly to their mobile wallets.

Insurance that builds a better future

But beyond just paying for losses, insurance can also encourage better practices. For example, farmers who plant drought-resistant crops or use water-saving techniques could get discounts on their premiums. Insurers and government agencies can work together to spread early warnings during typhoons or droughts, helping communities prepare and avoid bigger losses.

Education is just as important. By training local leaders and extension workers to explain how insurance works, we can build trust and help more people understand how to protect what they've worked so hard to grow.

Looking ahead

Of course, making all this happen will take continued effort — from the government, the private sector and the communities themselves. It will also need clear rules, smart use of resources and support systems that reach the people who need them most. With the right steps, agricultural insurance can do more than protect against risk — it can help modernize farming, lift people out of poverty and strengthen food security for the entire country.

In the end, it's not just about insuring crops. It's about investing in people — our farmers, fisherfolk and rural communities — so they can thrive in a changing world and continue to feed the nation with pride.

Source: manilatimes.net