A grower representative group is urging political parties to address the market failure that exists in the fledgling Australian multi-peril crop insurance (MPCI) market.
The call is prompted by a GrainGrowers Multi-Peril Crop Insurance report, which revealed how the MPCI market is plagued by providers exiting the market and a lack of products.
GrainGrowers is calling on political parties to push for a temporary 150% tax incentive on MPCI and weather insurance premiums for five years, to reduce the cost of insurance to growers and to encourage advisers and accountants to support their grower clients to consider the appropriateness of MPCI to improve their climate resilience and risk management, Grain Central reported.
GrainGrowers also noted how it was unable to include a product review in its 2019 MPCI report due to the lack of product availability. It said that while farmers around the world had access to MPCI products, the range and availability of these products in Australia is currently effectively non-existent.
“Federal government intervention is urgently needed to help build a sustainable MPCI and drought insurance market in Australia,” the group told Grain Central.