The UK’s agricultural sector is no stranger to risk—from extreme weather and disease outbreaks to volatile market prices and labour shortages. But as the industry embraces innovation to navigate these perennial challenges, new risk considerations are coming to the fore.
Among the latest developments is the UK government’s funding initiative to support the use of artificial intelligence on egg farms, aimed at improving productivity and animal welfare. While the integration of AI promises significant operational benefits, it also introduces fresh exposures around data security, system failures, and liability.
Any farm technology, must be suited to the specific needs of the user. Charlie Yorke, farming propositions manager at NFU Mutual, emphasised the importance of early consultation with agricultural clients. "It is crucial that customers engage with their agent, broker or insurer prior to purchasing new technology, so that any specific insurance needs or considerations can be addressed early on,” he said.
As farm technology becomes more sophisticated, brokers need to ensure policies are tailored accordingly. Yorke emphasised: "It’s vital to keep abreast of technology advances and industry developments, and to review products to ensure they are fit for purpose and meet customers’ needs."
For brokers working with agricultural clients, key considerations include:
Technological advancements are transforming farm operations and influencing how insurers assess risk and process claims.
One major use of technology is combatting rural crime. In Scotland, agricultural theft is on the rise, reaching record levels in 2024. According to a report from the Scottish Plant Owners Association, "Theft of motor vehicles (which covers all mechanically propelled vehicles from a private car to a dump truck) has reached the highest levels recorded during the reporting period, increasing by 13.3% in 2022/23 and up by 11.3% so far for 2023/24 – this equates to an average of 14 thefts of motor vehicles a day."
Yorke noted that technology now enables a more proactive approach to managing such risks. "In rural crime, sensor technology and trackers have significantly improved asset recovery rates,” he said. “The use of ANPR cameras has also increased over the last few years and is a valuable tool in the recovery of stolen machines."
Technology is also proving essential in livestock monitoring. As reported in The Times, a farmer in Essex experienced the theft of 300 ewes and lambs - worth up to £35,000 - during his father's funeral.
With livestock often left accessible, preventive measures are more important than ever. Yorke said: "Livestock wearables – for example cattle collars, EID tags and boluses – environmental sensors, security cameras, and trackers all allow customers to manage risk proactively and help prevent losses that may otherwise result in claims."
In the US, wearable technology is even being used to identify disease outbreaks. A 2025 Wall Street Journal report outlined how cow wearables helped American dairy farmers detect bird flu and other illnesses early.
The growth of farm technology is also changing how claims are handled. "From an insurer’s perspective, technological advancements are shaping the way we underwrite risk and handle claims – with technologies such as parametric solutions offering faster and data-led outcomes," Yorke said.
Data from tools such as dashcams, vehicle telematics, and livestock management software is also increasingly being used.
"Technologies like dashcams and vehicle telematics increasingly provide clear, forensic-style evidence that supports fair and accurate claims handling”, said Yorke.
In livestock claims, Yorke noted: "Livestock management tools like Shearwell Livestock Data can be used to record livestock movements and help in claims related to livestock theft. Farmers can record the EID tag numbers and notify the system which field they have been allocated - and, if stolen, these records can be referenced as part of the crime report."
He also stressed the importance of data compliance with claims handling: "GDPR and data sharing regulations are key,” he said. “Customers must be clearly informed about how data is used and have opt-out choices where appropriate."
As smart technologies take on greater roles in managing farms, brokers must help clients navigate the ethical and legal complexities of automation and AI. Yorke advised: "Work closely with regulators and follow their guidance regarding new technologies, AI, and data governance,” he said.
He also stressed the importance of high ethical standards, including Environmental, Social, and Governance (ESG) commitments. "Individual businesses also have a responsibility to conduct due diligence when selecting technology providers, particularly around data security, usage, and transparency,” he said.
Brokers can also directly support ethical considerations by evaluating:
