Market suggests presidential creation of laws to increase protection from climate risks
CNseg will deliver a document with proposals such as encouraging rural insurance and encouraging parametric insurance
The National Confederation of Insurance Companies (CNseg) will deliver to the economic team of presidential candidates a document with 31 sector proposals for the new government. Among the suggestions, the sector includes the creation of bills for issues related to climate risk.
One of the proposals is to increase the number of producers benefiting from rural insurance. The government pays part of the protection, but 10% of the producers have insurance. In the accumulated until May, the insurance market in Brazil grew 17% compared to the same period last year. In the same movement, indemnities grew 20%, mainly impacted by climate problems.
– This year, the sector has already paid R$ 8 billion in compensation to producers who lost the harvest. Imagine that this money will improve people, who can use the indemnity to pay even the loans? Without insurance, many would even have to sell their land – says the president of CNseg, Dyogo Oliveira.
Another suggestion is to offer parametric insurance, in partnership with the government, for financial support to victims of catastrophes such as floods and landslides. The proposal also suggests greater investment in institutions that monitor data and information on socio-environmental and climate risks.
– An important part of the population still remains outside the protection offered by the private insurance sector, relying solely on the State’s protection network, which, no matter how extensive, is unable to efficiently serve everyone.