It was an unusually quiet year in terms of the frequency and severity of hail losses on cereal crops, which is good news as it’ll keep this market competitive.
Like cereals, the 2013-14 cotton season was relatively benign in terms of the frequency and severity of hail events. This has meant another good season for insurers which should certainly assist in keeping premium rates at competitive levels.
Unfortunately it’s been a tough season for some of our plantation owners and managers. A number of significant fires in Victoria and NSW will place pressure on the limited number of insurers locally, as claims will undoubtedly exceed premiums. These losses are on top of a number of windstorm losses emanating out of NZ.
Horticulture and Viticulture
These markets continue to shrink due to a reluctance of horticulturalists and viticulturalists to insure their crops or assets. It is estimated that less than 1% of horticulture in Australia is insured, making this a very small market for insurance.