The Philippine Crop Insurance Corp. (PCIC) only has three years remaining before its corporate charter expires in 2028, prompting the agency to prepare a proposal for a 25-year extension.

PCIC president Jovy Bernabe said the agency will push for the extension once a new congress is elected later this year, according to a report by The Manila Times.

As a government-owned and -controlled corporation under the Department of Agriculture, PCIC is tasked with providing insurance coverage to farmers and fisherfolk against losses caused by natural disasters, plant diseases, and pest infestations. Coverage also extends to non-crop agricultural assets such as machinery, transport, and related infrastructure.

Bernabe said the agency will not seek changes to its mandate at this time, focusing instead on renewing its charter to continue operations beyond 2028. He told The Manila Times that the current legal framework is adequate and allows the board to implement necessary adjustments without legislative amendments.

"The changes we want to implement can be [done] without changing the charter," Bernabe said, adding that the board already has the authority to authorize new initiatives, including the possibility of operating as a reinsurance agency.

According to Bernabe, the extension will allow the agency to continue its services without interruption while giving it room to respond to risks and developments in the agriculture sector.

PCIC’s strategic vision outlines a transition toward becoming a sustainable, technology-driven insurance provider by the end of its current charter period. Its services are designed to reduce farmers’ financial exposure to production losses and help improve access to agricultural credit.

The proposal to extend PCIC’s corporate life will need legislative action and is expected to be part of the agenda for the incoming Congress.

The PCIC was created in 1978 through Presidential Decree 1467 under President Ferdinand Marcos Sr., originally with a 50-year term. It was later revised under Republic Act 8175, also known as the Revised Charter of the PCIC Act of 1995.

Source - https://www.insurancebusinessmag.com