Darren M. De Jesus If the DPWH continues to conflate the warranty period with the warranty security or bond, it risks creating false expectations among the public. DPWH Secretary Vince Dizon’s recent press conference on the current controversies surrounding flood control projects was hard-hitting. He declared that contractors behind ghost projects and substandard works will be automatically and permanently blacklisted. But beyond the fiery headlines, he posed a crucial next step: How do we return the people’s money? In his remarks, Secretary Dizon emphasized that government projects are “warranted for five years.” We must, however, clarify this statement. Under Republic Act 9184 (the Government Procurement Reform Act) and its IRR, contractors are indeed required to post a warranty security equivalent to at least 10 percent of the contract price. As clarified by the Government Procurement Policy Board (GPPB), in an Opinion dated 8 October 204 (NPM No. 33-2014), warranty security (or bond) lasts for only one year from final acceptance. It replaces the performance bond and is returned to the contractor after that period, regardless of whether the structure is temporary or permanent. The warranty period, on the other hand, can last for two, five, 15 years, depending on the structure. To clarify, warranty security or bond refers to the guarantee that the Government physically holds, and which it can call upon in case of defects within the first year. The warranty period, on the other hand, extends beyond that one year security. Contractors remain liable for structural defects or failures for two years in the case of ordinary structures, five years for semi-permanent ones, and 15 years for permanent structures. But once the bond is released, the Government no longer has a ready financial instrument to tap. Instead, it must pursue recovery through civil or even criminal cases if defects are discovered later. This subtle but important distinction should not be lost. If the DPWH continues to conflate the warranty period with the warranty security or bond, it risks creating false expectations among the public. People may believe the government can simply “call the bond” at any time within five years, when in fact, after the first year, the bond is gone and only the contractor’s legal liability remains. The way forward requires substantive reform, which should be addressed by the inquiries in aid of legislation before both the Senate and House. Further, there should be a standardization of all contracts between the DPWH and the Contractors, in light of the revelations in the inquiries. It is somehow discomforting to know that we have yet to unravel the entire picture in this grotesque web of corruption, which shall continue in the next weeks or months. Secretary Dizon is right to demand accountability right now, and to ask how the people’s money can be returned. But for that question to be answered convincingly, strong political will must be matched by legal precision. Only then can Filipinos be assured that ghost projects and substandard works will not only be punished, but that the public coffers will also be made whole. Source: tribune.net.ph

On behalf of the Philippine Insurers and Reinsurers Association (PIRA), Insurance Institute for Asia and the Pacific (IIAP), and the Philippine Insurance Club (PIC), we extend our heartfelt gratitude to all the sponsors and participants who made this event truly unforgettable. We look forward to seeing you next year on the course.

The World Bank is providing a $70m loan to the Philippines to establish a co-insurance pool aimed at protecting small farmers and fisherfolk from climate change impacts, the Department of Agriculture (DA) announced on Sunday. A co-insurance pool allows multiple insurers to share the risk of a large or complex policy, such as those covering natural disasters or energy projects. The loan will support a five-year climate-protection programme starting in 2026, benefiting an estimated 750,000 small farmers and fisherfolk, the DA said. The World Bank aims to use its loan to mobilise an additional $300–500m in climate protection for farmers, fisherfolk, and agri-based micro, small and medium enterprises (MSMEs). The Department of Finance is the borrower in the loan programme, with the DA as the project implementer. The programme will draw on the Philippine Crop Insurance Corporation’s expertise in agricultural insurance alongside the technical capabilities of the National Reinsurance Corporation of the Philippines. Source: www.asiainsurancereview.com

MANILA, Philippines — The Department of Agriculture (DA) is securing a $70-million insurance fund with support from the World Bank to cover at least 750,000 farmers nationwide, aiming to protect them from losses caused by calamities and other risks. Agriculture Secretary Francisco Tiu Laurel Jr. told lawmakers that his department is working on an “agri-insurance pool” program, which will be submitted to the Department of Economy, Planning and Development (DEPDev) for approval. He said the program, which is planned as a four-year initiative, is targeted to begin implementation in the first half of 2026. Speaking to reporters after the hearing, Tiu Laurel said the program would include a grant component, but he did not disclose the amount. “This is also to design an insurance product that will be advantageous to our farmers, aquaculture and fisherfolk,” he said on the sidelines of the Philippine Poultry Show 2025 and the International Livestock, Dairy, Meat Processing and Aquaculture Exposition at the SMX Convention Center in Pasay City. He added that representatives from non-life insurers Pioneer Insurance and Surety Corp., Malayan Insurance Co. Inc., and Pacific Union Insurance Co. were present at their meeting last Tuesday, signaling strong interest from major insurance firms in the initiative. The agriculture chief also said they are looking at providing around P50,000 to P70,000 per hectare in coverage, not just for rice farmers but also for those planting high-value crops, mentioning specifically tomatoes, eggplant and ginger. Coverage will also extend to livestock raisers, ensuring that farmers raising chickens, pigs and other animals can receive support in the event of disease outbreaks or other losses. This planned program comes as the agriculture sector shows signs of recovery, with both crop and livestock production picking up in recent months. Data from the Philippine Statistics Authority released earlier this month showed the country’s agricultural output grew by 5.7 percent in the second quarter from a year earlier. The rebound was driven by improved weather and stronger harvests in crops and poultry, surpassing the 1.9-percent growth in the first quarter and reversing the 3.2-percent drop in the same period last year. Source: www.philstar.com

By Michael F. Rellosa Imagine being a farmer in the Philippines, your livelihood tied directly to the land, your family’s future dependent on the whims of nature. For generations, Filipino farmers have faced this stark reality, but today, the stakes are higher than ever. Our nation, battered by an average of 20 typhoons annually and increasingly vulnerable to droughts and other climate shocks, sees its agricultural heartland constantly under threat. Despite agriculture employing a quarter of our workforce, a staggering two-thirds of our 10.9 million farmers remain unprotected by crop insurance, leaving them financially devastated with each passing storm or dry spell. This vulnerability isn’t just a farmer’s burden; it’s a national crisis, pushing us to rely heavily on imported rice and raising urgent questions about our food security. Agriculture insurance isn’t merely a financial product; it’s a lifeline. It’s the promise that when disaster strikes, farmers can recover their investments, rebuild and even dare to innovate, adopting new technologies to boost productivity. It’s about stabilizing incomes, ensuring food on our tables and building a more resilient Philippines. For decades, the Philippine Crop Insurance Corp. (PCIC), a government-owned entity, has been the primary insurer for our farmers. PCIC’s mission is clear: to shield farmers from losses caused by natural calamities, diseases and pests affecting their crops, livestock and farm assets. In 2023, PCIC reached 3.909 million farmers and fisherfolk, insuring P127.766 billion worth of agricultural assets and collecting P6.297 billion in premiums. While PCIC has shown financial strength, its traditional, often paper-based operations can be slow, and it still grapples with effectively managing the immense risks posed by widespread disasters. Recognizing these challenges, PCIC is embracing innovation. They’re pioneering a parametric insurance program for rice farmers, a game changer that uses satellite data and remote sensing to trigger rapid payouts within three to five days of a typhoon, bypassing lengthy field inspections. This isn’t replacing the old system but complementing it, aiming for faster, more objective relief. Similar efforts are under way with Weather Index-Based Insurance and Area-Based Yield Index Insurance, promising quicker compensation based on objective weather or yield data. The call for private hands Experts from the World Bank and Asian Development Bank (ADB) agree: For agriculture insurance to truly flourish, we need more players on the field. Bringing in private insurers isn’t just about adding numbers; it’s about injecting vitality and choice into the market. More choices, better fit: Private companies can offer a wider array of specialized products, tailored to the unique needs of different crops, regions and farmers, moving beyond a one-size-fits-all approach. Efficiency and reach: Private insurers bring modern underwriting, streamlined claims processes and extensive networks, including rural banks and cooperatives, to reach farmers in remote areas that PCIC might not fully cover. Innovation and healthy competition: More players mean more competition, which naturally leads to better services, fairer pricing and continuous innovation, ultimately benefiting the farmers. Shared burden, greater capacity: The sheer scale of climate risk in the Philippines is immense. Private capital, backed by global reinsurance, can help spread this burden, ensuring that no single entity, or farmer, has to face catastrophic losses alone. The biggest hurdle for private insurers has been PCIC’s exclusive access to government premium subsidies, creating an uneven playing field. The World Bank has been vocal, urging the government to open these subsidies to private players to foster genuine competition. Yet, there’s a beacon of hope in emerging public-private partnerships. The collaboration between PCIC and CARD Pioneer Microinsurance Inc., supported by ADB, is a prime example. This pilot program, where risks are shared (PCIC 70: CARD Pioneer 30) for high-value crops, allows private insurers to gain invaluable experience and build capacity within a supportive framework. Legislative action is also gaining momentum. House Bill 14, for instance, aims to expand PCIC’s coverage to all agricultural commodities and, critically, empower PCIC to offer reinsurance services to private insurers, fostering a more competitive and innovative market. This legislative push aligns directly with international recommendations for a more liberalized and robust agricultural insurance sector. For agriculture insurance to truly take off, we need a concerted effort. This means accelerating policy reforms to open up subsidies, investing in robust data infrastructure and technology for accurate risk assessment and launching nationwide campaigns to educate farmers about the benefits of insurance. By fostering strong public-private partnerships and integrating insurance into agricultural credit programs, we can build a future where every Filipino farmer is resilient, empowered to invest, and our nation’s food supply is secure against the escalating threats of climate change. It’s a future where the hard work of our farmers is truly protected, ensuring prosperity for all. Source: manilatimes.net

This follows the successful launch last May, where leaders gathered to explore “Digital Transformation in the Age of AI” for the insurance sector. Through this dedicated session at the IIAP Hall, Concentrix shared global trends, best practices, and live demos of end-to-end integrated solutions designed to accelerate the industry’s digital journey. The goal? To equip insurers and reinsurers to go beyond service delivery, and instead lead with innovation and tech-enabled solutions that redefine customer experiences. FILIPINNOVATION is more than a program; it’s a movement that transforms industries and empowers Filipinos to shape the future of work through excellence, innovation, and technology.

Philippines senator Christopher Lawrence Bong Go has urged the Philippines Health Insurance Corporation to develop more benefit packages for the senior citizens of the country. The Senator who has been a long-time votary of such expanded benefits for senior citizens, reiterated his views during a recent hearing of the parliament’s committee on health and demography during the 20th congress meeting of the Senate. He said, “Senior citizens are the most vulnerable to illnesses. We all know the difficulties faced by our grandparents due to expensive maintenance medicines.” Senator Go cited Senate Bill No. 411 that he had authored for the establishment of a senior citizens’ hospital that will serve as the National Specialty Center for Geriatric Health. Senator Go also co-authored the Republic Act 11916 to increase the social pension of indigent senior citizens from PHP500 ($9) to PHP1000 ($18). He said the 400 to 600 qualified senior citizens, who are still on the waiting list, be given social pensions. He also co-authored and co-sponsored RA 11982 that provides cash gifts for senior citizens reaching 80, 85, 90, and 95 years old. In June this year the 19th Congress had adjourned without the Senate acting on the proposed measure to expand the social benefits for senior citizens. At present, only indigent senior citizens are eligible for a PHP1,000 monthly pension under Republic Act 11916. The proposed legislation seeks to expand this coverage to all elderly Filipinos, granting PHP500 per month to those aged 60 to 69, and PHP1,000 monthly to those aged 70 and above. Source: asiainsurancereview.com

MANILA, Philippines — The Supreme Court has ordered an insurance company to pay at least P2.1 million to a man who lost his vehicle to theft even though it was eventually recovered. In a 38-page decision made public on Tuesday, the high court’s Third Division reinstated a trial court ruling that granted the insurance claim of Wilfrido Wijangco. This was after the Supreme Court found out that UCPB General Insurance Co. Inc. caused unreasonable delay by taking 162 days to act on Wijangco’s claim, even though he had submitted the required documents. When it finally responded, the vehicle was already in the custody of investigating authorities. The complainant owned a 2003 Jaguar X-Type, mortgaged with the AMA Rural Bank of Mandaluyong and insured with UCPB for P1.8 million from 2006 to 2007. On Aug. 24, 2006, his son Andrew was forced to give up the car to two men who held him up at gunpoint in a parking lot. Andrew and a friend immediately reported the incident to the police. Letter of protest Wijangco filed a claim with UCPB Insurance soon after, but it was not processed until March 2007, when he wrote to the bank to protest the delay. The UCPB informed him that the vehicle had been recovered and was in the custody of the Philippine National Police’s Traffic Management Group (TMG) Special Operations Division-Task Force Limbas. It said his claim would not proceed unless he submitted himself to a TMG investigation clearance. Protesting the lack on action on his claim, Wijangco filed a complaint against the insurer for violation of the Civil Code and Presidential Decree No. 612, as amended by Republic Act No. 10607 (Insurance Code), and for damages. In 2016, a regional trial court ruled in his favor and ordered the UCPB to pay him P1.8 million, on top of P200,000 in moral and exemplary damages, plus the cost of the lawsuit. But the Court of Appeals overturned the ruling in 2020, saying Wijangco failed to prove the total loss of the vehicle since it was recovered. In elevating the case to the Supreme Court, the complainant argued that neither the insurance policy nor the list of claim requirements required him to submit a clearance from the TMG. In its comment, UCPB Insurance maintained the appellate court was correct, insisting that no car theft occurred based on the TMG investigation report. It also said Wijangco failed to meet mandatory obligations under the policy by not immediately reporting the car theft to the police. The Supreme Court, however, sided with the regional trial court and held that the insurance company was liable to Wijangco under the policy. It cited Section 249 of the Insurance Code, which requires insurers, within 90 days after receipt of proof of loss, to determine whether the loss was caused by a covered peril under the insurance contract. It also ruled the insured vehicle was lost through theft, a covered risk under the policy, even if it was eventually recovered. Source: newsinfo.inquirer.net

The Philippine insurance sector saw double-digit growth in premium collections in the first half of 2025, according to the Insurance Commission (IC). Combined premiums for life and non-life products reached PHP242.8bn ($4.29bn) by end-June, up 13% from PHP214.9bn in the corresponding half in 2024. The growth boosted insurance penetration—the share of premiums in GDP—to 1.79% in 1H2025 from 1.7% during the same period in 2024. Life insurance premiums rose 12% to PHP195.1bn, driven largely by variable life policies, while non-life premiums jumped 20% to PHP39.6bn. Contributions to mutual benefit associations (MBAs) grew 3.1% year on year to PHP8.2bn. Insurance density climbed 12.1%, reaching PHP2.1bn by the end of June. “This considerable increase was driven by a rise in total premiums that exceeded the population growth rate of 0.9 percent. The growth suggests a higher level of adoption and use of insurance services within the population as of the quarter,” the IC said in a statement. Source: asiainsurancereview.com