The Ministry of Agriculture, Livestock and Supply (Mapa) is launching in July the Rural Insurance Monitor project, which will comprise a set of permanent actions with the objective of evaluating the products and services offered by insurers and continuously proposing improvements. This work will be coordinated by the Department of Risk Management of mapa and will have the participation and support of representative entities of rural producers and their cooperatives, resales of inputs, insurance companies, reinsurers, brokers, experts and financial institutions.
According to the Secretary of Agricultural Policy of the Map, César Halum, once the importance of budget contributions is consolidated, it is necessary to evaluate the quality of the products and services offered by the insurers that operate the Program. "That is, it is necessary to focus on the qualitative issue and with this to further develop this important instrument. We will internalize rural insurance and get information to producers," he concludes.
Rural insurance has shown significant developments in the country in recent years. The total amount insured, for example, jumped from 127 million in 2005 to 20 billion in 2019. To boost this instrument, state support was essential through the Rural Insurance Premium Grant Program (PSR), which supported the producer in the acquisition of policies during this period.
For the director of the Department of Risk Management of the Map, Pedro Loyola, now is the time for producers to better know the possibilities and limitations of rural insurance to build solutions that meet their needs. "A schedule of events is planned from July, by video conference, with the purpose of identifying the main problems related to insurance products for the crops of grains, fruits, olive crops, livestock, forests, aquaculture, coffee and other crops. There are more than 60 activities that will go through the sieve of producers by 2022", he explains.
The producer who has an interest in contracting rural insurance should look for a broker or a financial institution that commercializes rural insurance policy. Currently, 14 insurers are qualified to operate in the PSR.
The economic subsidy granted by the Ministry of Agriculture may be claimed by any natural or legal person who cultivates or produces species contemplated by the Program. For grains in general, the percentage of premium grant can vary between 20% and 40%, depending on the crop and type of coverage contracted. In the case of fruits, olive, sugarcane and other modalities (forests, livestock and aquaculture) the percentage of subsidy to the premium will be fixed at 40%.