After years of constant growth, insurance in agriculture in 2024 recorded in the Verona province – 24.8%. Defends Verona CODIVEthe Consortium that stipulates insurance in agriculture and has almost 9 thousand members, makes its end-of-year balance sheet marked by uncertainties and concerns.
The value insured by CODIVE went from 569 million euros in 2023 to 428 million euros in 2024. The main cause of the decline is due to the uncertainty of the public contribution which has dropped considerably over the years. In particular, in 2022 and 2023, the contribution stood at 52 and 55% instead of 70%, nor is there any certainty for the minimum contribution for 2024. This situation has put numerous agricultural companies already hit by an economic period in crisis not very positive.
CODIVE also notes that many companies are still waiting for the contributions for the years 2022 and 2023 which have been stopped for months due to anti-mafia checks: this amounts to almost ten million euros which are causing problems for companies and, consequently, are also weighing on the system of Consortium.
“This complex situation – explains the president of CODIVE Davide Ronca – has pushed numerous agricultural companies to choose to take risks rather than insure. But the spring frost and frost as well as some significant hailstorms that occurred during the year caused significant damage to several uninsured businesses.”
“We are very worried about this crisis situation in our system – continues Ronca – since extreme meteorological events are on the increase which bring more and more damage and destabilize our agricultural companies which must know the costs to be budgeted, including the insurance that they also represent a significant expense item. It is clear that high risk means high costs and deductibles.”
“CODIVE – adds Ronca – paid premiums of 72 million euros to the companies in 2023 and premium payments of 53 million euros are expected in 2024, i.e. significant amounts. Without any certainty and with very high insurance costs for the
companies taking out insurance is like taking a leap into the void.”
Ronca concludes: “The cost of money and the credit exposure of CODIVE towards banks must be considered (in 2024 the prize amounts are approximately 53 million) which must necessarily be distributed among our members. Interest payable in 2023
paid for bank loans amounted to two million euros and this year it is estimated that they will be exceeded”.
In 2024, the decrease in insured values in the Veronese province concerned various crops including -74% nurseries with 13.3 million insured, -45.5% insured horticultural production for 44.5 million euros and -20% fruit which stops at 52 million euros. Tobacco went against the trend and, despite the critical year, recorded an increase of 27% with 26.9 million euros insured.
“To the problems already highlighted we must also add the high accident rate that many companies have experienced
insurance to set very strict underwriting limits per product or municipality”, underlines the director of CODIVE Michele Marani
“Indeed, over the last two years there have been cases in which some companies have decided to no longer operate in this sector. CODIVE, in the abundant half century of its life, has certainly contributed with its work to the well-being and protection of agricultural companies, becoming a point of reference in the sector. I hope that this moment of profound crisis in the sector can be quickly overcome because the survival of the agricultural sector is at risk.”
“As a Consortium – conclude Ronca and Marani – we are interfacing with trade organizations and politics at
all levels to find answers that can guarantee the business continuity of farmers”.
