Use of artificial intelligence and computer vision to guarantee the protection of brazilian fruit culture via crop insurance

• Grant number: 22/08213-2
• Support Opportunities: Research Grants - Innovative Research in Small Business - PIPE
• Duration: December 01, 2022 - November 30, 2024
• Field of knowledge: Interdisciplinary Subjects
• Convênio/Acordo: SEBRAE-SP
• Principal Investigator: Aline Tramontini dos Santos
• Grantee: Aline Tramontini dos Santos
• Host Company: Agririsk Soluções em Gerenciamento de Risco Ltda
• CNAE: Tratamento de dados, provedores de serviços de aplicação e serviços de hospedagem na internet
• City: Piracicaba
• Pesquisadores principais: Daniel Lima Miquelluti
• Associated researchers: David José Miquelluti ; Leonardo Josoé Biffi ; Rennan Andres Paloschi ; Vitor Augusto Ozaki
• Associated grant(s): 22/15381-9 - Use of Artificial Intelligence and Computer Vision to Guarantee the Protection of Brazilian Fruit Culture via Crop Insurance, AP.PIPE
• Associated scholarship(s): 23/14116-2 - Information Technology Management Analyst, BP.TT; 23/01347-6 - Use of artificial intelligence and computer vision to guarantee the protection of brazilian fruit culture via crop insurance, BP.TT; 23/01699-0 - Use of artificial intelligence and computer vision to guarantee the protection of brazilian fruit culture via crop insurance, BP.TT; 22/15661-1 - Use of artificial intelligence and computer vision to guarantee the protection of Brazilian fruit culture via crop insurance, BP.PIPE

Abstract

The years 2021 and 2022 were characterized by several climatic problems that drastically reduced Brazilian agricultural production, mainly harming millions of Brazilian small and medium-sized producers. The occurrence of droughts and frosts reduced the value of production by billions of reais, with only orange recording a loss of approximately R$1 billion in the 2021/2022 harvest, while in the state of Rio Grande do Sul the reduction in production of grape was R$ 840 million. Despite the relative importance of agribusiness in GDP, there are several risks that make the sector's income stable, especially for small and medium-sized producers. According to the report by the World Bank and Embrapa, called "Management of Agricultural Farmers: Pathways to an Integrated Risk", released in 2015, among a multiplicity of risk risks in the sector, the one that is most critical is drought. The problem is that the vast majority of producers do not have access to agricultural insurance. About 4.9 million rural producers, about 98% of the total, are completely unprotected. The main reasons are: strong information asymmetry of properties due to risk data ownership; ii) products not meeting the real needs of producers; iii) high cost of insurance, even after government assistance; and, iv) limited territorial scope and operation of loyalty companies, due to lack of data; and, finally, v) the low incorporation of new technologies and the difficulty in the entire insurance chain. To a greater or lesser degree, all problems related to lack of data and inefficient processes and procedures. Among government risk management programs, the Rural Insurance Premium Subsidy Program (PSR) is the most important, as increasing budget volumes are allocated to increase rural insurance demand among rural producers. In 2019, the budget was BRL 380 million. In 2020, the budget was BRL 1 billion and BRL 1.3 billion in 2021. Despite increasing gains in the Government, agricultural insurance still faces strong obstacles. One of the main ones is the lack of efficiency and operational inefficiency of the claims settlement process. Currently, for the cultures implemented in this project, the procedure is highly objective and subject to fraud. In 2018 alone, the insurance market estimates the percentage of poorly carried out and/or fraudulent inspections at 20%. These sources are recurrent complaints from rural producers. In addition, the market has difficulties in accessing georeferenced data on properties, lack of knowledge of cultivation and harvest dates in these areas and low use of remote monitoring (satellite images and climate information). The proposed solution overcomes the technological, operational and commercial challenges combining the results of previous projects from the proponents and seeking disruptive solutions for the entire rural insurance value chain and extending the scope of operation to the cultures of ORANGE, APPLE, PEACH, TOMATO and GRAPE, which together accounted for a production value of approximately R$ 22.7 billion in 2020 according to IBGE data. However, only R$2.3 billion was covered by agricultural insurance, that is, approximately 10% of the total. The new claim adjustment methodology will be integrated with a platform to carry out the quotation, contracting, monitoring of the insured areas and the management of claims through the data generated by the algorithms and the intelligence developed in this project. On the platform, agricultural producers will find products that are much more adhering to their needs at a lower price. (AU)