Agricultural insurance in Latin America. The need to overcome asymmetries through proper management of the risks involved

Abstract

Climate is a circumstance beyond human control, with which the inherent uncertainty in climate risk means a greater threat to agricultural producers and to the economy. Latin America does not escape this situation and adaptation strategies to climate risks are essential for the economies of its countries.

The technology applied to the study and prediction of climatic events has even served to improve the insurance technique, allowing the elaboration of models that help to improve the statistical and probabilistic technique, allowing a better definition in the pricing of the risks involved. In addition, the technology has contributed to promote certain parametric insurance. However, the penetration of technology is not the same between developing and developed countries, with which the asymmetry in competitiveness between them is aggravated by this factor, among several others.

In Latin America, actions to manage these risks have focused on reactive and emergency actions, in the face of adverse climatic events. This is insufficient and requires a risk management strategy, approached with a comprehensive vision.