Rural insurance reaches a record of more than 217 thousand policies contracted in 2021

Ministry of Agriculture, Livestock and Supply (Mapa) releases this Monday (18/04) the report with the consolidated result of the implementation of the Rural Insurance Premium Subsidy Program (PSR) in 2021. R$ 1,18 billion were invested in subsidies for rural insurance premiums, which allowed financial assistance in the contracting of 217.934 policies. These policies were contracted by rural producers in all regions of the country and totaled around 14 million hectares insured. The total insured value represented R$68,3 billion.

The Secretary of Agricultural Policy, Guilherme Bastos, highlights the Program's reaching new heights and the efficiency of using the resource. “For the first time, we managed to reach the milestone of R$ 1 billion invested in the PSR, an increase of 34% compared to last year, making it possible to increase the total insured capital by 49%.”

“Considering the successive climate problems observed in recent years, which are increasingly severe, rural producers should not plant without insurance protection and the recommendations of Agricultural Climate Risk Zoning. In just the first two months of 2022, insurance companies have already paid producers approximately R$4,5 billion in compensation, mainly resulting from claims observed in soybean and summer corn crops in the Center-South region. This demonstrates the importance and effectiveness of insurance”, assesses the director of Mapa’s Risk Management Department, Pedro Loyola. In 2021, the total paid in compensation by insurance companies to producers was R$5,4 billion.

The report provides detailed information about the execution of the PSR in 2021, highlighting the main activities. For 2022, an initial budget of R$990 million is planned for the Program. 

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 producers, whether individuals or legal entities, 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.

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

For more information about PSR, download the app. Just access it for Android and IOS.