RURAL INSURANCE AND SUSTAINABILITY: EMERGING REGULATORY FRAMEWORKS AND INNOVATIONS IN BRAZIL’S AGRIBUSINESS SECTOR

Abstract

Rural insurance has consolidated itself as one of the most relevant instruments of Brazilian agricultural policy, playing an essential role in economic stability, food security, and the sustainability of rural production. This article examines rural insurance from a legal and institutional perspective, with emphasis on Law No. 15,040/2024—which establishes a specific legal microsystem for insurance contracts—and on the evolution of the Rural Insurance Premium Subsidy Program (PSR), created by Law No. 10,823/2003. This qualitative and exploratory research is based on documentary, normative, and statistical analysis, drawing on data from the Ministry of Agriculture and Livestock (MAPA), the Superintendence of Private Insurance (SUSEP), and academic studies published between 2005 and 2025. The findings indicate that the strengthening of the PSR and the modernization introduced by the new Insurance Law increase predictability and contractual transparency, reinforcing the social function of rural insurance as a public policy instrument. The study also highlights the advancement of parametric insurance, which uses objective climate indicators to trigger automatic indemnities, providing greater speed and efficiency in responding to extreme weather events. The article concludes that rural insurance—by integrating technological innovation, sustainability, and a modern regulatory framework—has become a strategic pillar of Brazilian agribusiness and a key mechanism for balancing production, environmental protection, and social justice, despite persistent challenges related to regional coverage, budgetary constraints, and integration with other risk-management tools.