After a year of not offering multi-peril crop insurance (MPCI) policies, Latevo is back to the MPCI market with a new offering.
The new product, known as Latevo Farm Income Protection (FIP), is a three-tiered level of cover available to growers for $14-$26 per hectare, which will protect 40-90% of average crop income.
Andrew Trotter, Latevo chief executive, said teaming up with “like-minded” underwriters at Lloyd's enabled them to roll out the FIP product.
“Our new model is split into three categories, enabling progression during the season, depending on seasonal conditions and the grower's choice,” Trotter told Grain Central. “We have made significant changes from our original product, making (it) more specific to the individual farmer.”
Trotter said in some cases, Latevo polices were half the price of similar ones it offered in past years, and “with the price now in the correct range, farmers can look at how added certainty will improve their business and grain-marketing decisions.”
The FIP product is split into the following categories:
- Category 1 – suited to below-average seasons, or the start of the growing season; and provides cover at 40-50pc of farm revenue. It doesn't require a detailed income assessment.
- Category 2 – covers 65-75pc of farm revenue, and is suitable for an average season; and
- Category 3 – covers 80-90pc, and is available for above-average seasons.
Growers opting for categories 2 and 3 need to undergo individual farm entity assessments for a one-off fee of $5,000 plus GST, which is eligible for the federal government's $2,500 insurance rebate scheme.
Growers who have taken out Category 1 insurance can upgrade to higher categories as the season progresses and pending seasonal conditions, such as average rainfall and an adequate farm management rating.
Latevo's FIP offering is further enhanced by its partnership with Agri-Analytics, which helped streamline the application process through the Latevo app; and Geosys, which developed Latevo Crop Monitor, to provide farmers real-time access about their crops and the season, Grain Central reported.