He State Insurance Bank (BSE) must pay the largest compensation in its 111-year history due to the negative effects of the drought in Uruguay It has generated —and continues to generate— in agriculture.
“It is the largest loss in the history of the bank. And not only talking about agricultural insurance, but taking over all the portfolios and all the sales branches that the Banco de Seguros has,” he said. Andres Grunert, supervisor of Commercial Area of the Agroeconomic Departmentin dialog with Underline.
The BSE estimated at the end of March that the amount to be paid would be around 90 million dollars. Today, that figure is already updated in 95 million dollars. “He is the biggest loss in the history of the bank. Beyond what happened at the mall, what happened in Punta Carretas. All those claims were below what this was,” insisted the supervisor, who also explained that what the BSE charges for the agricultural item is 3% and in compensation “the relative weight is much greater.” On this, they are working with technicians and other bank departments.
In any case, Grunert clarified that “the bank is very solid” and that it has a patrimony of 700 million dollars: “Today the bank operates with more ease than what the Central Bank requires and, in addition, some international agencies have rated the bank triple A”.
The drought fueled the growth of insurance awareness
For the BSE supervisor, the drought that Uruguay is going through, already considered the worst in the last century —whose total losses cannot yet be estimated with greater precision—, has a positive side: the increased attention to the importance of insurance.
“That had an immediate impact on the insurance of the winter crops. Now, these days rapeseed, wheat and barley are going to start to be planted, and the impact was immediate”, he pointed out in this regard.
According to Grunert, the growth has been seen for three years: “If we stop three years ago, growth is 40%. Which really is quite significant growth. The producer is experiencing several events, not only the drought, ”he considered, and mentioned winds, excess water, frost. “It has less press because it doesn’t touch the areas of the cities,” he said.
In addition, he indicated that This type of situation “takes several collections in one year”. He also said that “the challenge of insurance is to calibrate” the parameter “so that the income from everything that each producer contributes can be turned over to the one that really has the greatest damage” and that the sector “has to finance itself” within the bank.
Source: Ambito
