Agriculture in the East Asia and the Pacific region is very much exposed to the key climatic risks of typhoon, flood, and drought (FAO, 2011). Every year, significant crop damages have been attributed to natural risks, thus threatening the region’s food security. The Philippines, a developing country, and Japan, a developed country, are two of the countries in the Region that are very much vulnerable to these events. According to the World Risk Index report (UNUEHS, 2018), the Philippines’ risk to natural disasters ranked 3rd while Japan ranked 29th. Both countries have similar exposure scores, yet Japan was ranked lower in the risk index since it has better scores on coping and adaptive capacities. There are various risk management tools which can lessen farmers’ losses such as agricultural insurance. This research assessed the participation, efficiency, and effectiveness of major agricultural insurance programs of the National Agricultural Insurance Association (NOSAI) in Japan and of the Philippine Crop Insurance Corporation (PCIC) in the Republic of the Philippines using Korten’s (1980) Model of Fit framework. A total of 88 farmers in Gifu Prefecture, and 70 farmers in Laguna Province were interviewed for this study. Descriptive, Gap analysis, Likert scale, and cost and returns were used to analyze the responses of the farmers. The results shed light on the big differences between the agricultural insurance of between the two countries. Based on the results and as depicted in David Korten’s Model of Fit, Japan’s agricultural insurance programs were effective, efficient, and high participation while the Philippines’ programs were effective but were inefficient and have low participation. The study recommends adopting a central agricultural cooperative, or a federation of agricultural cooperatives, or an association of all farmers that directly links them to markets and institutions to improve the agricultural insurance system.
Key words: agricultural insurance, disaster management, climate change, food security