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Valdes private sectorinitiatives
Valdes private sectorinitiatives
Valdes private sectorinitiatives
Valdes private sectorinitiatives
Valdes private sectorinitiatives
Valdes private sectorinitiatives
Valdes private sectorinitiatives
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Valdes private sectorinitiatives

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  • 1. Agriculture Insurance in the Philippines Today’s Dilemmas
  • 2.
    • In practice, agricultural or crop insurance is really an adjunct to a whole set of risk management measures of which adequate farm management practices constitute the most important. Insurance by itself is no substitute for good production practice. The test of a good insurance programme is the cost versus the expected benefits and the sustainability thereof.
    • Diverse Objectives for Value Chain Analysis
      • Identify existing gaps and inefficiencies by analyzing cost structure of the system and seek ways to reduce these costs and increase productivity
      • To understand and improve the positions of certain stakeholders
      • Unlocking additional value in the supply chain
  • 3. AGRICULTURE Ex. RICE – PLANTING SEASON Seedings Planting Nurturing or Growing Harvesting Pests Excessive Pesticide Fire Irrigation | | CAT Perils (EQ, TYPHOON, FLOOD) Optional: Landslide on hillside plots Volcanic Eruption Near active volcanoes (to include volcanic ash damage, lahar, etc.. | | | | | | | | | | | | | |
  • 4. TRANSPORT & WAREHOUSING RISKS Storage Loading Transit Storage Unloading Pests Fire CAT Perils (EQ, TYPHOON, FLOOD) Pilferage Hijacking Collapse of Bridge Overturning of vehicle Collision/Accident | | | | | | | | | | | | | | | |
  • 5. MARKET RISKS Storage Risks Display Risks Loss of Value Pests | | Fire CAT Perils (spillage/robbery) (wetting/heat) | | | |
  • 6.
    • Single Peril Insurance… Yes
    • Multiple Peril… No
    • Private sector can deliver sustainable and actuarially fair
    • single peril insurance products but not multiple peril
    • products.
    • Examples: hail, rain, fire, wind
    • But single peril is not interesting to most resource limited
    • farmers. Poor farmers want yield and/or revenue
    • protection at an affordable price.
  • 7.
    • Traditional Multiple Peril Insurance
    • Programs Unsustainable
    • • Moral Hazard
    • • Adverse Selection
    • • High Administration Costs
    • • Pricing Dilemma: Sound pricing would make it unaffordable. Subsidized pricing represents fiscal cost that worsens as national income levels fall and size of farm population rises.

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