Papers: Govt allots US$5mn in agro insurance subsidies

Chile's agriculture ministry has 3bn pesos (US$5.17mn) budgeted to subsidize insurance policies for farmers, which will cut the policy cost by an average 50%, local press reported. Today only two insurers, Magallanes and Mapfre, offer agriculture insurance coverage in Chile. The Chilean government is campaigning hard to expand the coverage of agriculture insurance as well as to educate farmers about its usefulness; two factors that could attract more insurers to enter the business. The ministry recently announced that the total sale of agricultural insurance was set to grow 30% this year to 12,000 policies, compared to 2004. Local press also reported that the insurers plan to extend their coverage to new productive agricultural sectors and geographical regions.