IAG has announced a multi-peril crop insurance product for wheat, barley and canola growers to protect farmers against yield shortfall caused by natural perils such as flood, frost, drought and vermin.The product will be sold under the insurer’s customer brands CGU and WFI.
Known as Crop Income Protection, the product will be available under a one-year pilot program developed in partnership with Landmark. The product is designed to provide farmers with improved financial security, farming sustainability and income certainty.
IAG Executive General Manager Agribusiness, Andrew Beer said he was delighted to introduce the pilot product to the market.
— IAG (@IAGAust) March 27, 2017
“As the largest rural insurer in Australia, we have extensive knowledge of rural insurance through both WFI and CGU brands and understand the beneficial impact of multi-peril crop in this sector,” Beer said.
“We’ve been working for some time on developing a product that genuinely helps farmers with multi-peril crops to mitigate against the risk of natural perils. Unlike other products in the market, our product gives farmers a choice around the yield amount they wish to cover as well as the ability to select the price per tonne paid for that shortfall.
“As an organisation, we recognise the importance of farm productivity and economic stability in rural communities and the need to help alleviate the many pressures that farmers face, particularly the volatile climatic conditions that impact crop production.
“IAG is committed to investigating the best ways to overcome such obstacles and that’s why we’ve launched Crop Income Protection.”
Under the pilot program, Crop Income Protection will be offered to identified Landmark customers insured with CGU and WFI, who grow crops in Western Australia, South Australia, Victoria and New South Wales.
It is expected that more than 100 farmers will take part in the program and Crop Income Protection cover will be available as a standalone product.