A lawmaker has urged the Congress to pass a measure to amend the charter of the government-owned Philippine Crop Insurance Corp (PCIC) so it could offer index-based insurance coverage and engage in reinsurance.
The legislator, Mr Arthur Yap, said that PCIC’s charter would also allow it to partner with top European reinsurance firms, which are keen on investing in the Philippines, according to a report in Business Mirror.
“Top reinsurance companies, such as Munich Re and Swiss Re, want to venture into agricultural reinsurance and are looking for a partner in the Philippines,” Mr Yap told reporters last week.
Under a House Bill, which Mr Yap filed in September last year, the PCIC would be allowed to engage in reinsurance but only to cover index-based insurance contracts underwritten by private insurance companies.
Also, the Bill would mandate the PCIC and encourage private insurance companies to offer index-based insurance as one of their products. Mr Yap proposed the expansion of the insurance coverage of the PCIC to include high-value commercial crops, livestock, aquaculture and fishery products, agroforestry crops and forest plantations.