Rural insurance contracting in the North and Northeast grows 142% in 2020

The contracting of rural insurance by producers in the North and Northeast regions grew 142% this year compared to 2019. The total insured value reached R$2,4 billion. In relation to the number of policies contracted, the growth was 156%. The Rural Insurance Premium Subsidy Program (PSR) allocated, this year, R$50 million, in the second half of the year, exclusively to subsidize the contracting of policies in the two regions.

For the director of the Risk Management Department of the Agricultural Policy Secretariat of the Ministry of Agriculture, Livestock and Supply (Mapa), Pedro Loyola, this measure proved to be successful and should be maintained for next year.

In 2019, the first year of the incentive, R$22 million were invested in subsidies for the contracting of rural insurance by producers in both regions. This year, the total amount invested was R$44 million. When comparing the results of 2020 with 2018, when there was no incentive model, there was a significant expansion in the contracting of rural insurance policies. In 2018, 712 were hired; In 2019, this number jumped to 1.547. In 2020, the total number of policies totaled 3.974.

“The states in the North and Northeast regions still have low penetration in the rural insurance market. We need to create incentives so that the offer of insurance increases and for producers to create a culture of protecting their crops”, said Pedro Loyola. 

Hiring

Producers interested in taking out rural insurance should look for a broker or financial institution that sells rural insurance policies. Currently, 14 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 grains in general, the premium subsidy percentage can vary between 20% and 40%, depending on the crop and type of coverage contracted. In the case of fruits, vegetable crops, sugar cane and other types (forests, livestock and aquaculture) the percentage of subsidy to the premium will be fixed at 40%.

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