REFORMING AGRICULTURAL INSURANCE IN THE PHILIPPINES - TECHNICAL REPORT AND RECOMMENDATIONS

In 2021, the Bureau of the Treasury (BTr) requested World Bank’s technical support for the comprehensive transformation of the Philippine Crop Insurance Corporation (PCIC). As specific next steps, the BTr is seeking support in (i) design and launch of crop insurance schemes that are more appropriate to the needs of smallholder farmers; (ii) improved implementation of existing and new crop insurance schemes, including those aimed at the commercial agriculture sector; and (iii) facilitation and encouragement of private sector provision of crop insurance. The Government of the Philippines has requested the World Bank to identify ways to reform PCIC’s operations, promote private sector entry, rationalize the premium subsidy regime, and improve the provision of agricultural insurance to Philippine farmers. To address this request, the World Bank identified a two-phased approach.

This report presents the World Bank’s findings from Phase 1, including the review of PCIC’s operations, the roadmap, and recommendations for strengthening and reforming agricultural insurance in the Philippines. The preparation of this report was a collaboration between the World Bank team and key public and private sector stakeholders in the Philippines.