Demand for Rural Insurance triples in five years

A survey carried out by the National Confederation of Insurers (CNseg), between January and November 2022, shows that the demand for Rural insurance has almost tripled in the last five years. Rio Grande do Sul, Paraná and São Paulo were the states that most sought protection during the period. Compensations paid to rural producers increased fivefold in the same period.

Considering the first eleven months of the year, rural insurance revenue rose from R$4,284 billion in 2018 to R$12,644 billion in 2022. In compensation, the increase was 428,6%, from R$1,950 billion in 2018 to R$ $10,310 billion in 2022.

In relation to 2021, the product recorded a 40% increase in revenue and paid, for the first time, more than R$10 billion in compensation. An advance of 78,6%.

Rural insurance covers a group of insurances intended to cover risks related to agricultural, livestock, aquaculture and forestry activities, covering not only agricultural activity, but also the rural producer's assets and their products, credit for marketing these products, and may Also consider life insurance.

The Southern region of Brazil was the one that led the demand for rural insurance in 2022 in the year to November. Rio Grande do Sul appears (19,1%), followed by Paraná (17,7%), São Paulo (15,7%), Goiás (9,3%) and Mato Grosso do Sul (8,7%). Together, these states represented 70,5% of national revenue in the period. Regarding compensation, with a national share of 89,4%, the ranking was headed by Paraná (32,1%), followed by Rio Grande do Sul (31,0%), São Paulo (12,3%), Mato Grosso do Sul (9,9%) and Goiás (4,2%).

According to the president of the National Confederation of Insurers, Dyogo Oliveira, Rural insurance is essential for the subsistence of agriculture in the country, an activity that corresponds to around 30% of Brazil's GDP. “In addition to minimizing losses for rural producers, insurance is an educational tool for best practices in relation to agricultural activity”, says Oliveira.

This set of products is offered to producers, regardless of their size (small, medium or large), as long as they follow good management practices, such as, for example, Agricultural Zoning (Zarc), soil correction practices, fertilization and phytosanitary controls.