Tailor-made insurance is safest, advises expert

Rising input costs and flat commodity prices mean farmers need to look at tailor-made risk management solutions, said Seamus Casserly, president of the Financial Intermediaries Association of Southern Africa (FIA).

- Advertisement -

“In its annual report to parliament, the agriculture department recorded a significant 10,4% increase in farming debt and a 2,3% decrease in gross farming income,” he said.“The current environment makes it more important than ever to have the correct insurance in place. A direct insurer has to present a one-size-fits-all solution to achieve economies of scale, which might not be appropriate for a particular farmer who runs the risk of simply being unaware of all the potential risks to his business and the relevant cover required.

“Another risk of failing to use a specialist broker or insurer can occur at the time of a claims assessment. The money saved on premiums is likely to be completely overshadowed in the event of a disaster, such as crop failure, if the damage assessment is done incorrectly.”Casserly advised farmers who want to cut the cost of their insurance to look at increasing the excess that needs to be paid, or lowering the insured value of the equipment.