Following wide consultation with its grower clients, AgriRisk has established a number of key reasons for the lack of interest in these products including:
• Cost and lack of Government support
• Complexity of the products and the fact that they are all quite different, leading to confusion
• The onerous application process and the need to provide historical data
• Product limitations – the products don’t cover all crop types in all growing regions and the levels of cover available can be very low
• Growers are accustomed to managing the risk so MPCI is an additional cost they aren’t used to incurring
• For many of our growers broadacre isn’t their main source of farm revenue and therefore they don’t see it as necessary.
“The MPCI products offered cover for different regions, crop types, perils insured and levels of coverage. On top of that some products require an upfront fee to generate the necessary data to provide quotes, a concept foreign to most growers who generally receive insurance quotes at no cost,” Managing Director Mr John van der Vegt said.