Brazil: Rural insurance has a scarce supply for the 2022/23 crop

The sharp crop failure in several states caused billions in losses to agriculture and provoked a historic activation of rural insurance. The loss ratio - the difference between the amount collected from the sale of insurance and the amount paid in indemnities - reached 366% in the first four months of the year and remains high, according to Susep, an imbalance that already impacts the supply of agricultural insurance for the cycle 2022/23. The result is that the producer must find fewer offers available on the market and conditions different from those seen in previous years. “The two big losses suffered, especially with the off-season corn and now with the summer crop, have made the agricultural insurance market live in a context of limited product supply due to the enormous risks. In the first three months of this year alone, more than R$ 7 billion in indemnities were paid to producers, for example”, says Felipe Caballero, specialist in the insurance market, from Agro4U ...