Rural insurance contracting plummets in Paraná

The contracting of rural insurance in Paraná has plummeted in the last four years and raised a warning signal in Brazilian agribusiness given the increase in extreme weather events and the reduction in federal resources allocated to the sector.

Data from CNSeg (National Confederation of General Insurance Companies) show that revenue from rural insurance in the state fell from R$2.3 billion in 2022 to R$1.9 billion in 2025, a 17% drop in the period.

The drop is even more significant in the number of contracts. Information from the Rural Insurance Premium Subsidy Program (PSR), from the Ministry of Agriculture and Livestock, indicates that the total number of policies contracted in Paraná fell from 82 thousand in 2021 to 26 thousand in 2025, a decline of 68.3% in four years.

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The shrinkage also affected the area protected by insurance. In 2021, more than 3.8 million hectares were insured in the state. In 2025, this number fell to 1.25 million hectares, a reduction of 63.8%.

For the president of the FAEP System, Ágide Eduardo Meneguette, cuts in the budget of the federal subsidy program helped to discourage producers from joining.

Government estimates R$5 billion for rural insurance per year | CNN AGRO MONEY

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"A significant part of this drop is related to the cuts announced by the federal government, in recent years, for the Rural Insurance Premium Subsidy Program. This discourages farmers and puts the entire activity at risk", says Meneguette.

Federal budget cuts worry the sector. In 2025, around 42% of the resources planned for the PSR were blocked. In 2024, the execution of the program was approximately 40% below the amount approved by the National Congress.

The FAEP System assesses that the reduction in the subsidy increased the cost of policies and reduced the attractiveness of insurance for rural producers, especially in crops more exposed to climate losses.

Leading state in hiring

Historically, Paraná leads the contracting of rural insurance in Brazil. In 2024, the state accounted for 37.5% of policies contracted via PSR, with more than 45.8 thousand contracts.

The retraction movement is national. Data from CNseg indicate that the insured area in Brazil fell from 13.7 million hectares in 2021 to 3.2 million last year, a drop of 76.6%.

Sector revenue also fell in the country, falling from R$14.2 billion to R$12.9 billion in 2025, a drop of 8.8%.

"Without an increase in the federal subsidy and without a review of the current coverage model, the tendency is for an even greater reduction in adherence to rural insurance, precisely at a time of greater climate volatility and pressure on production costs in the countryside", laments Meneguette.

Source: CNN