Queensland farmers may soon be able to insure their livelihoods against natural disasters, thanks to a range of insurance options being developed by the Queensland Farmers’ Federation (QFF), Willis Towers Watson, and the University of Southern Queensland.

Unlike traditional insurance that insures assets against damage, the Australian-first offering will allow property owners to nominate a dollar figure they would like to receive in the event of a severe weather hitting their area – money they could spend at their own discretion.

Ross Henry, QFF project manager, said the group was working for 18 months on “simpler” and “more transparent” agricultural insurance options for Queensland to cover catastrophic and extreme weather events.

“It pays out on an event happening, not like traditional insurance which pays on the damage caused through loss assessment,” Henry told North Queensland Register. “It is a simpler form of insurance and more transparent – either the event happened, or it didn’t. There is no grey area.”

Henry said the insurance could protect farmers against the potential impacts of cyclones and may be available ahead of this cyclone season.