“Farmers recognize the importance of insurance, but they need to accommodate this cost in an activity that has been facing tight margins…”
Paulo Hora is Executive Superintendent of Rural Products and Reinsurance at Brasilseg, a company under the BB Seguros brand responsible for managing the company’s agribusiness insurance and reinsurance portfolios. He has worked in the insurance market since 2009, with leadership experience in claims, operations, products, reinsurance and projects. A veterinarian by training, he holds a specialization in International Relations, a postgraduate qualification in Business Administration from FGV and a master’s degree in Agribusiness from EESP/FGV and Esalq/USP. Before entering the insurance sector, he worked at the Ministry of Agriculture and in the private sector in agricultural product inspection, quality control and certification.
AgriBrasilis – What impact could a super El Niño have on agricultural insurance this growing season?
Paulo Hora – El Niño reinforces the need to plan ahead and monitor weather conditions throughout the growing season. For agricultural insurance, the challenge is to assess how this scenario interacts with the property’s location, the crop, planting dates, soil characteristics and management practices. The intensity of the phenomenon alone cannot determine the extent of potential losses or claims patterns.
At BB Seguros, we use weather data, production records and remote sensing to better understand the exposure of each area. The goal is to provide coverage suited to the farmer’s risk profile. Information, technology and good practices help reduce vulnerabilities, while insurance provides financial protection against the risks covered by the policy.
AgriBrasilis – Is the insurance market already reviewing premiums, coverage and risk exposure?
Paulo Hora – Risk assessment is an ongoing process, updated with each production cycle. In our case, this analysis takes into account past losses, weather conditions, property characteristics and the production system. These factors guide underwriting decisions, coverage and pricing.
An important advance is the ability to better distinguish between properties in the same region. Through our work on regenerative agriculture and management standards, we are seeking to measure how good practices make production more resilient. In the initiatives conducted so far, we have identified opportunities to offer differentiated pricing and coverage conditions according to the risk observed. These initiatives are still under development, and their results depend on the characteristics of each area.
AgriBrasilis – For which crops and regions could agricultural insurance become more expensive or restrictive?
Paulo Hora – It would not be appropriate to anticipate a list of crops or regions based solely on the intensity of El Niño. Exposure depends on the interaction between weather patterns, the agricultural calendar, the crop’s growth stage and the conditions of each property. Even neighboring areas may respond differently to the same weather event.
That is why we are moving toward increasingly individualized assessments. Soil type, water-holding capacity, vegetation cover and management history help us understand how vulnerable production may be. This differentiation is important for setting terms that reflect the risk actually identified.
AgriBrasilis – Why is agricultural insurance coverage shrinking as climate risks increase?
Paulo Hora – It is important to distinguish the need for protection from the ability to purchase insurance. Farmers recognize the importance of insurance, but they need to accommodate this cost in an activity that has been facing tight margins. When budgets are under pressure, purchasing coverage also becomes more difficult.
We also need to consider which indicator is being examined: insured area, number of policies, premium volume or type of insurance. Agricultural insurance encompasses different activities and forms of protection, which may follow different trends.
To expand access, we advocate strengthening the combination of private-sector instruments and public policies. Premium subsidies help make insurance more affordable. At the same time, products tailored to different production realities and more accurate risk assessments offer ways to expand protection sustainably.
AgriBrasilis – Is reinsurance becoming more expensive or selective for agribusiness?
Paulo Hora – Reinsurance plays an important role in the sector’s capacity to provide protection because it allows risks that may affect many properties in a single event to be shared. When assessing this exposure, relevant factors include loss history, the geographic concentration of the portfolio and the quality of risk information.
It is necessary to distinguish the technical assessment of each portfolio from conclusions about the market as a whole. Any claim that reinsurance is becoming more expensive or selective must take into account the period, renewal conditions and the characteristics of each contract. From a management perspective, our focus is on deepening our understanding of insured areas and continuously improving risk assessment.
AgriBrasilis – What risks might farmers be underestimating in the 2026/27 crop season?
Paulo Hora – One concern is focusing only on yields and underestimating the financial consequences of an adverse event. A change in the planting schedule or a production shortfall can affect costs, marketing, logistics and cash flow. Planning needs to account for these connections and for the ability to continue operating in the following production cycle.
Another risk is assuming that a property’s historical performance alone is sufficient to guide decisions. Farmers’ experience remains essential, but it needs to be combined with up-to-date weather information, technical guidance and knowledge of soil conditions and management practices.
It is also important to review the coverage purchased: which risks are covered, what yield level is insured, what the limits are and what share of any loss remains the farmer’s responsibility. Insurance should be part of pre-planting planning, alongside preventive measures and management practices.
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