The Rural Insurance market remains tight in terms of the number of insurers committed to the market but competitive for risks that have performed well.
Unfortunately, but somewhat understandably, significant machinery assets remain difficult to manage with few interested insurers.
While frustrating for some of our clients, this makes some sense if you consider a new round bale cotton picker can be worth some $800,000. If the insurance premium is in the order of $15 - $20,000, the loss of a single machine in any one year can have a dramatic impact on the insurer’s portfolio result. This means insurers are very cautious, although AgriRisk will work hard to assist wherever possible.