Brazil is home to some of the world’s largest agricultural operations, where individual farms may cover tens of thousands of hectares. These large-scale enterprises help maintain Brazil’s position as the world’s leading food exporter. However, more than 4.5 million small and medium-sized farmers—who account for the majority of Brazil’s farmland and food production—face significant challenges in competing with this scale and managing growing climate risks[1].
Despite their essential role, smallholders have limited access to advanced financial tools and risk management options that protect against price fluctuations, pests, and increasingly severe weather events. Unlike large agribusinesses, only a small fraction of these farmers—less than 5%—currently benefit from crop insurance. The result is heightened vulnerability to climate shocks and market volatility across much of Brazil’s agriculture sector[2].
Recognising this critical gap, Newe was established in 2017 to make agricultural insurance more accessible to underserved farmers. Following a change in ownership in 2019, the company has grown to become a leading provider of crop insurance for small and medium-sized farms. With support from the InsuResilience Investment Fund Private Equity II (“IIF II”)*, Newe is helping to address climate risk and build resilience in communities that form the backbone of Brazil’s agricultural landscape.
*IIF II has been closed for investments. Information for illustrative purposes only.
Case study: Newe
Turning the climate insurance gap into a business opportunity
Newe’s model of distribution, partnerships, and technology
Newe delivers innovative, accessible insurance solutions tailored to Brazil’s underserved rural communities by combining strategic partnerships, education, and advanced technology.
Newe’s go-to-market strategy leverages the existing agricultural value chain – working with cooperatives, agribusiness, input sellers, specialised brokers, and other local partners- and embeds insurance products within established channels such as input supply, crop sales, or cooperative membership. This integrated approach makes insurance significantly more accessible for farmers. Each year, Newe educates around 12,000 farmers and issues approx. 3,000 insurance policies, with over half these benefiting farms smaller than 50 hectares.
Education is central to Newe’s approach. Through local workshops and partnerships with local cooperatives, agribusinesses, and NGOs, Newe builds trust and turns insurance from an unfamiliar concept into a practical risk management tool for farmers.
Newe’s technological edge comes from Green Data, a precision risk assessment and pricing spun out from its own R&D. This enables real-time monitoring of weather risks and tailored pricing, further supporting Newe’s mission to offer affordable and accessible insurance and strengthen resilience in Brazil’s agricultural heartland.
Bounce back faster: the strength of parametric insurance
A core innovation from Newe is parametric insurance, which delivers automatic payouts triggered by measurable events like rainfall or temperature extremes – eliminating lengthy claims processes. This model lowers administrative costs and accelerates post-disaster recovery for smallholder farmers.
Newe pioneered parametric insurance in Brazil, issuing the country’s first federally subsidised parametric policy in 2021, as well as the first for cocoa producers. Newe is also the first insurer to partner with the Brazilian Institute of Meteorology, ensuring access to reliable meteorological data for accurate, transparent pricing[3].
The Bahia Cocoa Project: Parametric insurance in action
A strong example of Newe’s impact is its parametric insurance project for cocoa farmers in Bahia, Brazil’s leading state smallholder agriculture. In partnership with a local cooperative and with premium subsidies from a BlueOrchard-managed Grant Facility, Newe has delivered tailored insurance and educational support to over 7,700 farmers, enhancing climate resilience. So far, 43 policies have been issued in Bahia for crops like cocoa, umbu, and coriander[4].
Beyond financial protection, Newe’s initiative promotes organic farming and sustainable land use, helping conserve the Atlantic Forest and Caatinga biomes. Additionally, across Bahia and Pará, Newe has introduced agricultural coverage in nearly 170 municipalities, often for crops previously uninsured.
The project is already yielding tangible results: drought-triggered payouts have been paid to farmers in six rural settlements.
Climate disasters create awareness and drive a rebound in crop insurance protection
Recent climate disasters such as the floods that devastated the state of Rio Grande do Sul in 2024 have intensified demand for effective agricultural insurance solutions, transforming concern into action. However, widespread adoption depends on overcoming barriers of affordability, accessibility, and trust – challenges best addressed through cross-sector collaboration.
The Brazilian government’s Rural Insurance Premium Subsidy Programme (PSR) has played a crucial role, subsidising 20-45% of insurance premium and making protection accessible for many smallholder farmers[5]. Since 2023, Newe has demonstrated what’s possible when innovation aligns with policy support, issuing over 6,500 policies across various crops and regions. This effort has closed protection gaps and broadened insurance options for small farmers.
The impact is clear: In 2024, Newe’s agricultural insurance gross written premiums (GWPs) rose 44% year-on-year to R 84 million[6].
Looking ahead, continued incentives and supportive regulation will be crucial for enabling GWPs to reach, and potentially exceed, the robust levels recorded in 2021. Such measures are essential to sustaining and growing insurance uptake, establishing a strong base for ongoing expansion as climate risks intensify and risk management solutions evolve across Brazil.
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[1] Censo Agropecuário, conducted by the Brazilian Institute of Geography and Statistics (IBGE)
[2] OECD, World Bank
[3] Inmet estimula desenvolvimento de seguro rural paramétrico — Ministério da Agricultura e Pecuária
[4] Newe Seguros, Home | Newe Insurance
[5] Programa de Subvenção ao Prêmio do Seguro Rural – PSR — Ministério da Agricultura e Pecuária
[6] Newe Seguros, Home | Newe Insurance
Source: Newe Seguros, Home | Newe Insurance.
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