Safety net on offer to rural business

Safety net on offer to rural business

Safety net on offer to rural business

Western Australian grain farmers will have greater insurance protection under plans by an international insurer to move into the Australian rural insurance space.

Swiss Re Corporate Solutions has indicated it will offer crop mitigation insurance after its global head of agribusiness Bernard Belk was in the west last week meeting with farmers, politicians and grain handling groups.

According to reports from thewest.com.au Swiss Re and US partner The Climate Corporation planned to roll out the crop insurance product in April. It would be based on a similar product sold by the two groups in the US.

Belk stated that following discussions there was the possibility that 20 per cent of WA's grain-growing businesses could take up insurance within 12 months.

The plans by Swiss Re comes despite objections by the National Rural Advisory Council that crop insurance was not a viable option for local farmers.

The council was asked by the Federal Government to assess insurance options in the wake of recent droughts and in its report of late last year indicated its’ preference was insuring against particular weather events in a specific location.

It argued at the time that while the coverage was less direct different industries can access that market leading to lower premiums for those insured.

The findings were rejected by members of Western Australia’s parliament who travelled to Europe to meet with insurers, leading to last week’s announcement.

6 Comments
  • Nathan Hadlow, South Coast Insurance Brokers WA Pt 13/02/2013 2:30:24 PM
    I think the growers will like the idea until they see the premium.
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  • Underwriter 13/02/2013 2:36:25 PM
    It will be interesting to see if it is sold as insurance or as a derivative. If it is sold as it is in the USA it is unlikely to pass the test as an insurance product as there is no proof of loss requirement?
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  • Rick Purslowe IC Frith WA 13/02/2013 5:04:54 PM
    The idea is great , but will the farmers pay for it , I don't think so
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