Committee formed to drive multi-peril

Grain Producers Australia (GPA) chairman, Andrew Weidemann said the new committee would be led by NSW Farmers president and NFF director, Fiona Simpson, and would aim to develop strategies to increase more players in the multi-peril insurance market.

“Fiona has a real empathy with this topic and was an easy choice to lead this industry wide initiative,” he said.

“Invitations have been extended to the attendees at the meeting to form a focused group which will steer the next steps required to increase the Multi-Peril market in Australia.”

Led by GPA, last week’s meeting was attended all major grains producer groups along with representatives from the major banks and some associated supply chain companies.

Mr Weidemann said the meeting highlighted the need for greater understanding of the requirements of reinsurers when developing insurance risk policies, including confidence in the data provided by growers.

“Clearly without both the quantity and quality of data the reinsurers have found this a barrier to crop insurance in the past and that remain the single greatest impediment,” he said.

“Frankly this issue can only be solved quickly by the growers themselves being prepared to engage with reinsurers.”

As reported in the Queensland Country Life earlier this month, insurance company Latevo, offered the first multi-peril crop insurance product to Australian farmers for the 2014 season.

The product was taken up by a limited number of farmers in every state, including two in Queensland.

The policy only relates to broadacre winter crops and covers 16 “perils” including frost, drought, hail, insect and pest.

Condamine farmer Rodney Hamilton paid $100,000 to insure his 2014 wheat crop and is now helping to co-ordinate a series of grower meetings across Queensland and NSW to discuss the benefits of multi-peril insurance with other farmers.

Queensland Country Life understands meetings will be held in Dalby, Roma, Miles and St George in the coming weeks.