Agricultural insurance contracts grew 16% in 2023, surpassing one billion euros for the first time.
Agroseguro is part of the 37th Congress of the International Association of Agricultural Insurers (AIAG) in Geneva
20/11/2023
Agricultural insurance claims set a historical record in 2023: 1.241 billion euros
31/01/2024- Insured capital hit a ninth consecutive annual record, rising 3% to exceed €16.9 billion, driven by underwriting of key insurance lines.
Agricultural insurance witnessed a 16% growth in 2023, reaching €1,011 million, as reported by Agroseguro at 31 December, 2023. This is the first time that the Spanish agricultural insurance system surpassed one billion euros in premium receipts.
The capital insured by agricultural insurance achieved a record for the ninth consecutive year, increasing by 3% in 2023 to reach €16,918 million. This rise is driven by an increase of insurance contracts in key sectors of Spanish agriculture: vegetables (12%), fruit trees (9%), citrus (3%), wine grapes (3%), and overall livestock insurance (6%). Similar upward trends are noted in other insurance categories covering textile and non-textile industrial production, cherries, nuts, tropical crops, forage crops, table grapes, strawberries, berries, live plants and cut flowers, and forestry productions.
Notably, the main insurance line in terms of insured capital, herbaceous crops, has been significantly affected by the precipitation deficit experienced in 2023. Indeed, the overall data has registered a year-on-year decline, attributed to a reduced contracting of spring modules, driven by diminished production expectations resulting from the drought. Nonetheless, there is a notable upward trend in insurance for the 2024 campaign. Specifically, policies secured during autumn — encompassing comprehensive coverage, including protection against drought — surpass 3.2 million hectares (12%), and the insured capital for the upcoming campaign has currently increased by 3%, already surpassing €1.9 billion.
The aggregate of policies taken out in 2023 covers 6 million insured hectares and 36.9 million tons. The number of insured animals rises to 416 million.
This increased interest in agricultural insurance responds to the evident need of rural areas to be protected against the prevailing climatic challenges, marked by persistent episodes of drought and heat waves, coupled with frequent occurrences of violent storm fronts with hail, wind, and rain, and the emergence of severe frosts, all posing unpredictable and increasingly frequent risks. Addressing these challenges, Sergio de Andrés, the General Director of Agroseguro, highlighted that "the Spanish agricultural sector will be more secure in 2024 than ever before in its history".
He also emphasised that the “confidence that farmers and livestock breeders have in the effectiveness of the Spanish Combined Agricultural Insurance system and in the management of Agroseguro, which demonstrated its capability to respond in 2023, a year marked by the highest claims rate in the history of agricultural insurance". Pending the finalisation and assessment of claims received in the closing weeks of the year, compensations are poised to surpass €1,200 million in 2023, representing an almost 50% increase compared to the previous year.
