The Growing Importance of Agricultural Insurance in Latin America

Speaking to Prensa Latina, the head of the Latin American Association for the Development of Agricultural Insurance (Alasa) said that a similar phenomenon occurs worldwide and is even seen as one of the most powerful public policy instruments.

At the same time, insurance is valued as a powerful tool to reduce poverty in the region, said Cortés, who is attending the Technical Meeting in Cuba: Best practices in the adjustment of plantains and corn, an event organized by the National Insurance Company (ESEN) and Alasa.

Cortés recalled that 60 percent of the poverty in Latin American countries is found in rural areas, but given the characteristics of the activity, with small changes, production can be increased in a short time.

In Mexico, he exemplified, by changing the variety of corn from criollo to hybrid, farmers in the southeast of the country increased grain production by up to 80 percent, and with it per capita income, without failing to mention that in the middle of this process are issues related to sustainability and financial inclusion.

About 10 or 15 years ago there was hardly any agricultural insurance, he said, but today it is the main market, because the agricultural sectors need credit, both from the bank and from agricultural input or seed companies to carry out the harvest.

Today, the food sector is a major generator of foreign currency in many Latin American countries. And in this sense, by strengthening itself in the face of climate change, insurance is also increasing its relevance.

The event highlighted the importance of exchanging knowledge, experiences and capabilities to address current challenges.

On the other hand, the general director of ESEN, Juan Javier Barbón, agreed with Cortés on the importance of the event, since 80 percent of the volume of the Company’s operations belong to that type of insurance.

Barbón explained to this agency that it is a way of learning about new good practices, keeping up to date with global trends, and acquiring experience and technology. It is not just about the best ways of doing things, but how to do them, he said.

Of course, he said, ESEN also contributes its experiences to those countries that do not have the development in this activity.

Cuba has been an active member of ALASA since 1992 and in the 2000s served on the secretariat of its board of directors, to which it recently returned in March 2022.

Barbón explained that ESEN is a company that sells civil liability insurance, personal insurance and property insurance, the latter being the most comprehensive.

Within the property insurance, he pointed out, agricultural insurance in its three modalities has greater importance in the development of ESEN: agricultural and livestock assets and the assets that support agricultural production and represent 80 percent of the company’s level of activities.

He specified that the greatest coverage is allocated to priority and strategic crops for the country, such as tobacco, grains and sugar cane.

According to the director, unfortunately many producers do not see insurance as an end, but rather as a means of obtaining financing for bank loans.

However, they are working to increase the insurance culture that they want to achieve in the entire population.

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How does ⁤agricultural insurance contribute to reducing poverty in rural ‍areas ‌of Latin America?

The Power of Agricultural Insurance ⁣in Reducing Poverty and Boosting Economic ⁢Growth in Latin America

Agricultural insurance ​has emerged as a vital tool in⁣ reducing poverty and promoting economic⁤ growth in Latin America.⁣ According ‌to ‌Juan Carlos Cortés, head of the ⁤Latin ⁢American Association for the Development of Agricultural​ Insurance (Alasa), this phenomenon is not unique to the region, but is seen as ‌one of the most ⁤powerful​ public policy instruments globally. In ⁣an ‌interview with Prensa Latina, Cortés highlighted the importance ‍of agricultural insurance in⁢ addressing poverty ⁣and promoting economic growth⁢ in⁤ rural areas.

Poverty in Rural Areas:⁤ A Significant Challenge

Poverty⁤ is ⁣a ‌significant​ challenge in Latin American countries, ⁤with 60% of poverty found⁣ in ​rural areas. ⁤However, Cortés noted ⁢that small changes in agricultural practices can ​lead⁢ to increased production and income in a short period. He cited the example ‍of Mexico, where farmers in the southeast ⁤of the⁢ country ​increased grain production by up to 80% and per capita income ​by ​changing​ the variety of corn from ‍criollo to hybrid.

Agricultural Insurance: A Key to ‍Sustainability and Financial Inclusion

Agricultural insurance plays a critical role ‌in promoting sustainability and financial inclusion in rural areas.‌ Cortés emphasized that insurance is⁤ essential for farmers to access‍ credit ⁢from banks and agricultural⁤ input or seed companies,‍ which is ‌necessary for them to carry out​ their harvests. Today, agricultural insurance is the main market, and its relevance is increasing​ in the face of⁤ climate​ change.

The Importance ​of Knowledge Sharing

The Technical Meeting⁤ in ⁣Cuba,‌ organized by the ⁣National‍ Insurance Company (ESEN) and Alasa, highlighted the importance of⁤ exchanging knowledge, experiences, and capabilities to ‌address current challenges. Juan Javier Barbón, general director of ESEN, emphasized the significance of the ⁢event, which brings together ⁤experts⁤ from various ‌countries to share best practices and global trends in agricultural insurance.

Cuba’s ‍Role in Agricultural Insurance

Cuba has been an ⁤active ‍member of Alasa since 1992 and ​has played a ‍significant role ⁢in promoting agricultural insurance ⁢in the region.⁣ ESEN, a company that sells civil liability​ insurance, ⁢personal insurance, ⁢and property insurance, has contributed its experiences to other countries⁤ that do not have the same level of development in agricultural insurance.

The Future of Agricultural Insurance‌ in Latin America

The future of agricultural insurance in Latin⁢ America looks promising, with the sector expected to ⁣continue playing a⁢ critical role in reducing poverty and promoting economic growth. As Cortés noted, the food sector⁣ is​ a major generator of foreign currency in many Latin American ⁢countries, and strengthening agricultural insurance will help to increase its​ relevance ​in the face of climate change.

Conclusion

agricultural insurance is a⁤ powerful tool in reducing⁢ poverty and promoting economic‌ growth ​in‌ Latin America. By providing farmers with​ access ‍to credit and protecting them against climate-related risks, agricultural insurance​ can help to increase‌ production and income in rural areas. The importance of knowledge sharing and⁢ cooperation among​ countries in the region cannot⁣ be overstated, and⁤ events like the Technical⁣ Meeting in Cuba will ‍continue to play ‌a critical role in⁤ promoting best practices and ⁣global⁢ trends ‌in agricultural⁢ insurance.

Keyword ‌Optimization:

Agricultural ⁤insurance

Poverty reduction

Economic growth

Latin America

⁢ Rural areas

Sustainability

Financial inclusion

Climate⁢ change

Food sector

⁢Foreign currency

Credit access

Risk protection

⁢Knowledge sharing

Cooperation

Best practices

⁤ Global trends

Meta⁣ Description:

Learn how ‍agricultural insurance is ⁤reducing poverty ‍and promoting economic growth in Latin America. Discover⁢ the importance of knowledge‍ sharing and cooperation​ in ‍promoting best practices ‌and global​ trends in agricultural insurance.

Header Tags:

H1: The Power of Agricultural Insurance in ⁤Reducing Poverty and Boosting Economic Growth in Latin America

H2: Poverty in Rural Areas: A Significant Challenge

H2: ⁤Agricultural Insurance: A Key to Sustainability and Financial Inclusion

H2: The ‍Importance ‍of Knowledge Sharing

H2: ⁣Cuba’s Role in Agricultural ​Insurance

H2: The ​Future of Agricultural Insurance in Latin America

* H2: ‌Conclusion

– How does agricultural insurance contribute to poverty alleviation in rural Latin America?

The Power of Agricultural Insurance in Reducing Poverty and Boosting Economic Growth in Latin America

Agricultural insurance has emerged as a vital tool in reducing poverty and promoting economic growth in rural areas of Latin America. According to Juan Carlos Cortés, head of the Latin American Association for the Development of Agricultural Insurance (Alasa), this phenomenon is not unique to the region, but rather a global trend that highlights the importance of agricultural insurance as a powerful public policy instrument.

The Role of Agricultural Insurance in Poverty Reduction

Poverty is a significant challenge in rural areas of Latin America, with 60% of the region’s poverty concentrated in these areas. However, agricultural insurance has the potential to change this narrative by providing small-scale farmers with the necessary protection and financial stability to increase their production and income.

In Mexico, for example, a simple change in corn variety from criollo to hybrid has resulted in an 80% increase in grain production, leading to higher per capita income for farmers. This is a testament to the power of agricultural insurance in promoting sustainable agricultural practices and financial inclusion.

The Growing Importance of Agricultural Insurance

Fifteen years ago, agricultural insurance was a niche market, but today it has become a major player in the agricultural sector. This shift is largely driven by the need for farmers to access credit and other financial services to support their production. Agricultural insurance has emerged as a critical component of this process, providing farmers with the necessary protection against climate-related risks and other uncertainties.

The Food Sector: A Major Generator of Foreign Currency

The food sector is a significant contributor to foreign currency earnings in many Latin American countries. As such, strengthening the sector’s resilience to climate change through agricultural insurance is crucial for promoting economic growth and stability.

The Importance of Knowledge Sharing and Capacity Building

The Technical Meeting in Cuba, organized by the National Insurance Company (ESEN) and Alasa, highlighted the importance of exchanging knowledge, experiences, and capabilities to address current challenges in agricultural insurance. The event provided a platform for participants to learn about new good practices, global trends, and innovative technologies that can be adapted to local contexts.

Cuba’s Experience with Agricultural Insurance

Cuba has been an active member of Alasa since 1992 and has served on the secretariat of its board of directors. The country has made significant strides in developing its agricultural insurance sector, with ESEN providing a range of insurance products, including civil liability, personal, and property insurance. Agricultural insurance is a critical component of ESEN’s operations, with 80% of its activities focused on this area.

Challenges and Opportunities

Despite the growing importance of agricultural insurance, there are still challenges to be addressed. Many farmers still view insurance as a means of accessing financing for bank loans rather than as a critical risk management tool. However, by promoting an insurance culture and increasing awareness of the benefits of agricultural insurance, it is possible to overcome these challenges and unlock the full potential of agricultural insurance in reducing poverty and promoting economic growth in rural areas of Latin America.

agricultural insurance has emerged as a powerful tool in reducing poverty and promoting economic growth in rural areas of Latin America. By providing small-scale farmers with the necessary protection and financial stability, agricultural insurance can play a critical role in promoting sustainable agricultural practices, financial inclusion, and economic development in the region.