CARD Pioneer Microinsurance Inc. (CPMI) is the country’s first private insurance firm to partner with state-run Philippine Crop Insurance Corp. (PCIC) to provide insurance protection to smallholder farmers against losses from natural calamities, plant diseases and pest infestations.

Supported by the Asian Development Bank (ADB) under its Financial Inclusion Framework Strengthening technical assistance project, this initiative marks the Philippines’ first public-private partnership aimed at bridging the insurance gap and contributing to the sustainable development of agricultural insurance of the country. Data from the Department of Agriculture showed that typhoons in 2020 have wiped out P14.25 billion in agricultural goods. The recent typhoon Odette in 2021, meanwhile, destroyed P13.3 billion in agricultural damage alone.

“Almost 24%, or roughly over 25 million of the Philippines population are engaged in agriculture – proof that we have no shortage of natural resources suitable for agriculture. But we also know that exposure to natural calamities is a constant threat that continues to cause devastating damage to their livelihood. Our initiative with PCIC aims to address that by helping smallholder farmers restart as typhoons, pests and plant diseases ravage their crops,” said Pioneer Inc. President and CEO Lorenzo Chan Jr.

CPMI and PCIC will share risks underwritten for each smallholder farmer insurance policy with the former as the lead insurer.

This co-insurance partnership will focus on insuring high-value crops in selected regions where the current penetration of PCIC’s agriculture insurance products is limited. PCIC will provide capacity-building support to CPMI on various aspects of agriculture insurance, such as underwriting, policy administration, actuarial matters and claims management.

Insurance Commissioner Dennis Funa emphasized the importance of this program in the agricultural sector. “Offering comprehensive insurance packages and services could help our farmers understand the importance of insurance and other financial instrumentalities in securing their future and of their bodies. With this coinsurance agreement between the PCIC and CPMI, I hope that our local farmers and agri-entrepreneurs could reap more benefits and ensure the safety and sustainability of their livelihood,” Funa said.

“We are honored by the trust extended to us to be part of the solution in addressing the needs of the industry that provides food for our table and dare I say – contributes to peace in our society. We hope this initiative will spur more synergies between the public and the private sectors in sustainably providing effective affordable insurance products to all farmers and ultimately help them manage the risks they face,” Chan said.

In 2021, CPMI achieved over 11 million enrollments from its microinsurance programs. CPMI is a joint-venture between CARD MRI, the country’s largest microfinance provider, and Pioneer, one of the country’s leading insurance groups. CPMI seeks to offer relevant needs-based insurance solutions to help underserved and unserved Filipinos recover, rebuild and restart after life’s setbacks.