Rural insurance claims reached R$7,7 billion in the first half of 2022

Insurance companies qualified in the Rural Insurance Premium Subsidy Program (PSR), of the Ministry of Agriculture, Livestock and Supply (Mapa), paid R$7,7 billion in compensation to rural producers between January and June 2022, which represents a nominal growth of 352% over the amount of R$1,7 billion paid in the same period of 2021. If compared to the previous year, the amount paid in the first half of this year already exceeds the total amount paid in 2021, which was R$5,4 billion. The data was published by the Private Insurance Superintendence (Susep).

The director of Mapa's Risk Management Department, Pedro Loyola, highlights that the numbers show the importance of rural insurance and reinforce the need to strengthen the PSR. “We started the year 2022 with a budget of R$990 million to support the contracting of policies across the country, however we have already requested a supplement of R$710 million for the Program, as the prices of the main insured products, such as soybeans and corn, increased significantly. In addition, the cost of policies has also been adjusted due to the high accident rate observed in recent harvests”.    

Last week, the government's Budget Execution Board (JEO) approved part of the requested demand (R$ 200 million), but it will still be necessary to approve supplementary regulations to release the resource. According to Loyola, Mapa will continue to seek the full amount of supplementation requested. “With the R$990 million we will only have 8 million hectares insured, much smaller than the 14 million covered in 2021. The PSR needs R$1,7 billion for 2022. Furthermore, for the 2023 Annual Budget Law the target is to seek R$2 billion.”

Hiring

Producers interested in taking out rural insurance should look for a broker or financial institution that sells rural insurance policies. Currently, 16 insurance companies are authorized to operate in the PSR. Rural insurance is aimed at individual or legal producers, regardless of access to rural credit.

The economic subsidy granted by the Ministry of Agriculture can be requested by any individual or legal entity that cultivates or produces species covered by the Program. 

For more information about PSR, download the app. Just log in to Android and para IOS.  

From 2022 onwards, the premium subsidy percentage will be fixed at 40% for all crops/activities, except for soybeans, whose percentage will be fixed at 20%. This rule applies to any type of product and coverage, according to PSR rules, which can be accessed here.