We are proud of what we have

The Province of Mendoza is finalizing its third season with the implementation of an insurance system that came to modify some characteristics of the previous ones and thus achieve more benefits for small and medium producers.

Alfredo Aciar, Advisor to the Ministry of Economy and Energy of the Government of Mendoza, detailed that “in previous programs the system was public, that is, the province contracted insurance without transferring any cost to producers. It was a pure service provided by the province but it had little or low hail compensation and that generated some complaints ”.

Faced with the claims, the Government chose to make a series of fundamental modifications.

“The first of these was the incorporation of the frost and that this be accepted by the insurance companies, taking into account the high risk that this means since the frosts when they come affect a significant amount of hectares, something that does not occur with the hail, where irrigation can be better projected ”, explained Aciar.

Another important modification to the insurance program in Mendoza was that the producers were made part of the cost, with an 80/20 scheme, (80% the State and the rest the producers). According to Aciar, “In this way, one can discriminate between those who show a willingness to participate and those who do not.”

The Province today insures 16 thousand small and medium producers of up to 20 hectares, and of that total they only adhere to and currently pay 5000. With these numbers, a 30% insurance penetration rate is reached.

Before the expiration of the current tender, the provincial government must this year make a new call to interested companies. “In this call we are going to try to emphasize and see if the insurance companies can help a little more to increase that penetration rate. The state buys the insurance from the companies, which sell the product, but do not generate any incentive for the people. That is why some greater effort will be requested from the 7 insurance companies that participate, which at the same time sell other products. The idea would be that they incorporate agricultural insurance in some of their commercial packages (auto / home). And in this way achieve greater adherence ”.

“In European countries, such as Spain, this program has much higher penetration rates, but it has been in operation for 40 years and is a state policy. Here we are just starting. ”, Explained the counselor of the Ministry regarding the expectations of being able to achieve it.

The reception of the program has been positive, although there are many issues for improvement. “The producers have seen with good eyes that the insurance companies, once the season is over, immediately pay the claims, something that with previous systems did not happen, but rather took a long time. Even in cases of a large hail storm where the damage was significant, companies have anticipated these payments and that is very well received by producers. ”

The claims of the Mendoza producers have to do with the amount or the insured amount that they consider is still low. However, from the Government they clarify that, to increase said sum, they should also increase the contribution of producers.

“The sums insured with the companies are relatively good, but as a result of the very high inflation rates that we have had in recent years, the amounts at the time of collection have been devalued.”

“The sums insured with the companies are relatively good, but as a result of the very high inflation rates that we have had in recent years, the amounts at the time of collection have been devalued.”

AN URGENT ORDER

In order to continue advancing and improving the Insurance Program, the provincial authorities consider it urgent that the National Government release them from paying VAT on insurance. “We need ALASA to accompany us on this request. In our case, the product is being bought by a government. 21% is a lot and the state cannot download it. Last year there were 50 million pesos in the budget, money that can be reallocated for a greater sum insured and the producers benefit, “Aciar said.

MENDOZA HEADQUARTERS OF ALASA 2020

This year the province of Mendoza will host the XVI ALASA International Congress that will take place from March 9 to 12, where the visit of outstanding professionals worldwide is expected. In this sense, the provincial authorities consider this event of vital importance and the possibility of being able to take advantage of these presences with so much knowledge that they can help put the issue of insurance on the agenda, not only politically but in the media. “Here in Mendoza the media do not echo the importance of the issue of agricultural insurance, benefits and basically prevention. People in general and producers must value what they have, taking into account that this system does not exist in other provinces. We are very proud of what we have as a government, we believe that it is a good product when one compares it to what is in other parts of the world and here in our country, ”emphasized the Ministry advisor.

“We must realize that when a production is lost, not only the producer loses, but it is a chain of problems that it generates. In small apartment towns that live in rural areas, when there is a large loss of harvest, everything stops. The economy begins to stop, as it is the engine of those places. The lack of awareness is incredible. The damages of a loss of harvest go much further than what the affected or damaged producer loses ”, Aciar warned.

“Events as important as those organized by ALASA are very beneficial since ideas for work always come up and hopefully they will come in handy to add them in the next tender.” Alfredo Aciar remarked expectantly to finish.