Agricultural insurance coverage in the Americas maintained positive growth in those countries that have launched a public-private model and where agriculture represents a fundamental part of the economy.
From the study "Agricultural insurance in the Americas: a tool for risk management", prepared by the Inter-American Institute for Cooperation on Agriculture (IICA) and the Latin American Association for the Development of Agricultural Insurance (ALASA):
A report by SUGESE contains information on Basic Indicators, Market Structure and Participants and Products.
December 2012 Bulletin from the Superintendent of Insurance (SUGESE):
Basic Indicators
The total amount of direct premiums was ¢466.2 billion in 2012, with 69% of that amount corresponding to voluntary insurance. The retention of these total direct premiums compared to 2011 remained at 81% and the total retained earned premiums (allocated ) increased from 96% in 2011 to 91% in 2012.
In Costa Rica, 4 years after the opening up of the sector, the 10 private insurance companies have a 9.8% market share.
The undisputed leader remains the Instituto Nacional de Seguros (INS), with a 90.2% market share and among the private companies the strongest are Mapfre and Assa with a 9.6% share between them.
According to the Superintendent of Insurance, the largest segment of the market is the general insurance category (51%), followed by sickness insurance (26%) and personal life policies (26%).
The Central Bank of Costa Rica is putting to public consultation the Regulation for Defence and Consumer Protection Insurance.
The regulation will be under consultation until 27 December.
Nacion.com reports that "According to this regulation, all natural or legal persons who are properly identified can make complaints or appeals with insurance firms provided these requests relate to their interests or legally recognized rights."
In Panama the sale of agricultural insurance policies up to August has seen a 47% increase compared to the same period last year.
Inclement weather has encouraged the agricultural sector to take up these types of policies. A total of 1,442 producers have insured 25,175 hectares of crops and about 405 have insured about 8472 head of cattle.
Agricultural insurance contracted in the month of August 2012 amounted to $2.4 million.
A report by Fitch notes the momentum in the insurance sector in Central America and its growth potential.
From the report by Fitch Central America is entitled "Performance of Insurance Industry Central America: Well Positioned for Growth ":
The insurance industry in Central America managed to increase premium production by 12% compared to 2010, where Panama, Guatemala and Honduras recorded an above-average growth.
A low penetration level of insurance as related to GDP allows for sustainable growth of insurance businesses.
In the past five years, Panama has seen an explosion of commercial development and an influx of insurance companies. The country is about to remake its insurance legislation, which is also aimed at helping the country become a regional hub for insurance and reinsurance, according to Carlos Abrahams, a director at Global Intermediaries.
The Ministry of Agricultural Development in Panama has changed hands eight times in the past eight years, while the agricultural sector’s output has fallen by 3.2%.
The agricultural sector faces a critical situation with little prospects in an economy that is oriented towards services. Agricultural production fell by 3.2% in the period 2003-2010, demonstrating a downward trend, according to an article in Capital.com.pa.
The alliance with Grupo Sancor aims to develop products for the agricultural sector and for dealing with job risks.
Current legislation states that the market will be opened for insurance related to job hazards and risks on January 2011. The National Insurance Institute (INS) believes that the alliance with Grupo Sancor will be very advantageous, as they have experience in this field.
In 2010, the company will offer extended coverage in its agricultural insurance service to include three other crops: corn, bean and sorghum.
Claudo Taboada, head of Lafise Insurance, explained that the new crops will be included in the second half of the year. Currently, the service covers only peanut and rice.
From Elnuevodiario.com.ni: “Lafise’s service protects farmers against losses caused by rainfall excess or shortage.
BFA (Banco de Fomento Agropecuario), a state-owned bank fostering agriculture, is shopping for agricultural insurance, as risks in these activities have increased due to climate change.
Nora de López, president of the institution, explained they have held meetings with insurance companies, and are pondering whether to launch a public bidding process for hiring this insurance.
The agricultural industry is confident it will return to profitability with these investments.
$11 million will be given as extraordinary loans for rice and corn growers from Coclé, Herrera and Los Santos, for the 2009/10 harvest.
Rubén Campos, general manager of the Agricultural Insurance Institute, told Pa-digital.com.pa that "they have approved bails up to $1.700.000 for growers from diverse sectors".
The government will subsidize between 30% and 60% of the total cost of insurance premiums for crop losses due to bad weather.
Rice, beans, corn, potatoes, onions, bananas and tropical roots (cassava, cocoyam, yam and taro) are the crops that will benefit.
Agriculture Minister Javier Flores informed Nacion.com: "We are already working with the INS, the Treasury Department and international agencies on a parametric insurance system based on historical rainfall rates and weather conditions. These premiums would be much more accessible for producers."
The Guatemalan Association of Insurance Institutions (AGIS) promotes the creation of an insurance product for small farmers, subsidized by the state.
Mario Mendizábal, director of AGIS, explained to Prensalibre.com, "The idea is to support small farmers, who do not have access to other types of agricultural insurance but suffer serious losses due to the effects of climate or natural disasters.
According to Agriculture and Cattle Ranching Secretary, agricultural insurance is the only hope for producers against losses from weather phenomena.
The Minister of Agriculture and Cattle Ranching (MACR), Hector Hernandez, said that the National Committee for Agricultural Insurance will start operating soon. It was created with the participation of the private sector, international organisms and the government.