Factors Influencing Insurance Participation and the Risk Management Impact of the Hog Insurance Program of the Philippine Crop Insurance Corporation to Backyard Farmers in San Jose, Batangas, 2023

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Christian Paul L. Fang

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

Risk management is crucial in farming due to inherent uncertainties, such as diseases, which impact investments and production, consequently affecting income stability. This study explored the hog insurance subsidy program offered by the Philippine Crop Insurance Corporation (PCIC) as a risk management tool for backyard hog farmers in San Jose, Batangas, focusing on factors influencing the uptake of subsidized insurance amidst the risk of African Swine Fever (ASF). Particularly, the study focused on exploring the service flow of the PCIC in offering the hog insurance subsidy, the impacts of the insurance program on the risk management of farmers, and the satisfaction of insured farmers in the delivery of service. Data were collected through face-to-face interviews with key informants and with 47 insured and 74 uninsured randomly selected hog farmers. The study found that the PCIC relies on the Municipal Agriculture Office (MAO) and Barangay Animal Health Workers (BAHEWs) for facilitating enrollment and claims application, and overall marketing of the insurance program. Despite combined efforts, insurance coverage remains below target because of many other factors. The study found that factors significantly influencing insurance participation include knowledge scores, non-farm income, and insurance perceptions. Increased knowledge and absence of non- farm income positively influence participation, while positive insurance perceptions unexpectedly reduce the likelihood of insurance uptake. The finding on knowledge score is further justified by low awareness as the top reason for most farmers’ non-participation. In terms of risk management impact, it was emphasized that insured farmers indeed experience a level of financial protection with their insurance status. However, the study also found no differences in financial institution awareness and utilization as well as in the level of investment between insured and uninsured farmers. Meanwhile, insured farmers expressed satisfaction with staff competency, respect, and fairness. However, dissatisfaction arose regarding the time for claims processing. The PCIC website, known to few farmers, received mixed reviews, with concerns about outdated content. Facilities also received high satisfaction ratings for accessibility, cleanliness, security, and comfort.

Overall, the study underscored the importance of effective communication and support in increasing insurance uptake. Recommendations include formal training for BAHEWs and other barangay officials, and better dissemination of information through localized information hubs. Future research may consider a broader scope of study by covering more municipalities in Batangas for a better understanding of the factors affecting insurance uptake given that the threat of ASF is still ongoing. Other municipalities for further research include areas recognized as pink zones or those near ASF-infected areas.

Language

English

LC Subject

Agriculture, Risk management, Insurance industry

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 N84

Notes

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Document Type

Thesis

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