Commission approves project that modernizes rural insurance and may create catastrophe fund

The Senate's Committee on Constitution and Justice (CCJ) unanimously approved bill 2,951/2024, which updates the legal framework for rural insurance. The proposal aims to provide predictability to the Subsidy to Premium Program (PSR) and reorganize the risk management policy in the countryside. The text now goes to a supplementary round in the committee before moving to the Chamber of Deputies. The National Confederation of Insurers (CNseg) assesses that the measure can help curb the loss of coverage in the sector. According to the entity, the project creates conditions to recover the protection contracted by producers in recent years. The debate occurs at a time of contraction in the agricultural insurance market. Data from CNseg show that the insured area fell from 16.3% of the planted area in 2021 to 7.5% in 2024. The entity projects that the index could reach 2.3% in 2025 without structural changes. The number of producers served also decreased, from 120,000 to 85,000 in the ...