Time to overhaul insurance

Perhaps this most recent slam-dunk of a hail storm will motivate growers, government and the insurance industry time to revisit the age-old insurance question: why don’t farmers insure against such risks? Everyone knows the answer to that; premiums and claims administration are way beyond the capacity of most.

After the November 2016 event, the recovery team and some industry organisations agitated for a comprehensive examination of opportunities to craft an ‘opt in’ insurance program for all primary producers. It would require a major actuarial exercise to estimate risks of all types, across all crops. The benefits in years such as this would be significant for those at the sharp end but also for government agencies and disaster recovery programs .

Yet another reason for Riverland and Mallee farming groups and community to come together and develop a business case for such a scheme. The current systems of managing such risk, weighing up insurance premiums and arguing for compensation is dysfunctional and very old fashioned. It’s time it was overhauled for the benefit of all stakeholders, including insurance companies.

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