Insurers’ risk strategies can have a big impact on food and agri businesses, both in terms of managing risk and controlling premium costs. So what steps can companies take to understand these strategies and work with them to achieve the best results for their risk and insurance programme?
Insurance in the food and agri sector has gone through a sea change in recent years. The tipping point came in 2001 when massive insurance losses and the withdrawal of capacity from the market led to an upward spiralling of premiums. Things have stabilised since then. Premiums have flatlined and are falling in some classes.
Insurance buyers are shopping in a highly competitive marketplace and have benefitted from a more transactional approach to their insurance needs. Finance Directors are as happy as they can be with below-inflation rises in their annual insurance costs. So is that the end of the story?
Far from it. There remains a great deal that clients can do to improve cover, manage key risks and reduce costs. But all of this is contingent on knowing how the insurance market works both now and in the future. It has become far more sophisticated in the past decade – more systems led; more return-on-capital based; more risk averse in many sectors. This has enormous implications for the food and agri sector, but to see why, we need to go back to 2001.
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For further information, please contact Jon Miller, Head of Regional Food & Agri Practice on +44 (0)12 1626 7806