Agroseguro, the apex of Spanish protection

We cannot live without the countryside; it provides us with food, work, and prosperity. Eurostat data shows that, in Spain, it accounts for 2.3% of Gross Domestic Product (GDP), well above the average of 1.7% in the European Union. Our Mediterranean climate, the quality of the soil, and the abundance of land dedicated to agriculture and livestock encourage activity.

As stated by the Ministry of Agriculture, Fisheries, and Food, production in the agriculture sector (both plant and animal) reached a record value of €65.081 billion in 2023, reflecting a 3.3% increase compared to 2022. Income was set at €31.931 billion last year: 11.1% above the previous year.

However, this sector is exposed to numerous risks, including climate-related hazards, pests, diseases, as well as fires, damage to machinery or facilities, and even theft. This is where insurance becomes especially valuable, and one institution plays a pivotal role.

In 2020, Agroseguro turned 40, with its spring, summers, autumns, and winters. During this period, it has encompassed all aspects of the primary sector, and this institution has led the way in Spain’s combined agricultural insurance system. This model is based on the collaborative participation of both public and private institutions, as well as the voluntary involvement of insurance companies and farmers and livestock producers. This system currently covers the risks that may affect agricultural, livestock, forestry, and aquaculture production, offering peace of mind to these professionals.

Within this structure, the Agrupación Española de Entidades Aseguradoras de los Seguros Agrarios Combinados, S.A., Agroseguro, is responsible for managing agricultural insurance on behalf of the insurance companies that are part of the pool and operate in coinsurance (i.e., they cover the same risk together).

Its main mission focuses on the development of three aspects:

• Issuing receipts to policyholders and collecting payments.
• Receiving declarations of claimable events from customers.
• Carrying out the procedures for assessment, valuation and payment of claimable events by co-insurers.

In 2023, with revenues of €930 million and an insured production value of €16.748 billion, Agroseguro achieved the highest figures in its history.

However, it will not be remembered as one of the best years for the agricultural sector. Climate events were severely adverse in some regions, negatively impacting agricultural production. In the past fiscal year, 178,000 agricultural claimable events were processed—a 54% increase compared to 2022—along with 98,000 livestock claimable events. Agroseguro paid out a total of €1.241 billion in compensation, marking a 56% rise from the previous year, primarily due to the adverse weather conditions affecting the Iberian Peninsula throughout the year. High temperatures, low rainfall, strong storms, hail and wind were some of the most significant and damaging risks to the countryside, which raised the loss ratio to a record high.

These figures reflect the impact of climate change and, at the same time, support the value of agricultural insurance so that farming and livestock activity can be maintained despite incidents.

Indeed, the positive trend in agricultural insurance contracting is solidifying in 2024, marking the best first half of the year in its history. By June of this year, the premium bill had surpassed €580 million, and the insured capital exceeded €10.4 billion, representing increases of 7% and 12%, respectively, compared to the same period in 2023.

The rural community needs experts who understand their insurance needs and are dedicated to safeguarding their businesses, allowing them to operate without fear of risks and unforeseen events. Insurance offers solutions to many of the challenges they face in their daily lives.

MAPFRE was born in 1933 as the Mutualidad de Seguros de la Agrupación de Propietarios de Fincas Rústicas de España (Mutual Insurance Company of the Association of Owners of Rural Estates of Spain), in order to insure farm workers. With a thorough understanding of the sector, we have developed the most innovative and comprehensive solutions to protect it.

Through our combined agricultural insurance, we offer customers essential coverage for agricultural activities, ensuring maximum protection. In addition, the MAPFRE catalog for this sector offers other options, such as agricultural multirisk insurance, greenhouse insurance, and agricultural machinery insurance.

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