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Managing agricultural insurance in Brazil

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Publication date
28/08/2008
Number of Pages
11
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Latin America & the Caribbean
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Weather & Climate related
Type of Risk Managment Option:
Risk transfer
Commodity:
Crops
Author
Carlos Enrique Guanziroli, Carlos Americo Basco
Organization
IICA

This article presents different topics and proposals for solving the problems facing the rural insurance system in Brazil, addressed at the seminar “Risk and the Management of Rural Insurance in Brazil,” held on June 24-26, 2008, at the Economics Institute of the University of Campinas (UNICAMP). Much of the discussion focused on the advantages of operating an insurance system vs. extending debt repayment dates; the subsidizing of premiums when risks are high; and the need for an information system that can operate with detailed data on farmers rather than averages, which do not re?ect the true situation in agriculture. Reference was also made to the possibility of creating a Catastrophe Fund in Brazil to provide victims with additional indemni?cation, since to date it has been impossible to implement an ef?cient system of protection against the risks posed by pests and climatic events in Brazil.