By Robert Harris
BIG savings on premiums are claimed for a new insurance package tailor-made for individual farms.
Quality Managed Risk was developed and is run by Q Farms, a group of agricultural insurance specialists who have teamed up with insurers Norwich Union in a bid to grab a big share of the £600 million a year farm insurance market, currently dominated by NFU Mutual.
Key to the concept is the “bespoke” service. This allows the degree of risk to be assessed for individual farm businesses, allowing premiums to be pitched accordingly.
Farmers who follow quality assurance scheme practises, such as the Assured Combinable Crop Scheme or Unigates superior stockmanship scheme, will be favoured targets. Marketing agents Agricredit and ABN will supply names of likely customers, and business consultants Andersons will act as independent assessors.
“The farmers reward for achieving quality standards must be long term sustainable price benefits, not short term blind discounts. The traditional method of pricing results in bland averaging of premiums, with the quality farmer paying over the odds, as insurers seek to cover the cost of insuring the high risk farmer,” says Alan Douglas of Q Farms. “If you manage your business well, you should pay less.”
Typical savings of 40% should be possible, he adds.