Brazilian rural insurance should follow models from Spain and the USA, says FGV Agro

Bill 2,951/2024, which updates the legal framework for rural insurance, was approved last Thursday (27) by the Senate's Committee on Constitution and Justice (CCJ). The proposal seeks to provide predictability to the Subsidy to the Premium Program (PSR) and reorganize the risk management policy in the countryside. Among the discussions of the text is the requirement for the producer to be insured to receive extraordinary credit from the government in cases of environmental catastrophe. For the executive coordinator of the Rural Insurance Observatory of FGV Agro, Pedro Loyola, in this case, Brazil should follow the model adopted in Spain, where the State does not cover the costs of producers without protection, but in cases where the insurer did not cover all the loss, the government offers help. "So it might be interesting to encourage it to be a mechanism of rural insurance, to give access not only to facilitated credit, with lower interest rates, because the risk is lower, but ...