WA Farmers "early adopters" of the new AWB frost insurance product
- By: "Farm Tender" News
- Cattle News
- Aug 08, 2018
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Western Australian grain growers have been 'early adopters' of our new frost insurance product with 75% of the traditional fire and hail policies electing to add the optional Frost Endorsement.
Based on research from the Western Australian Department of Primary Industries and Regional Development, "every second year, on average, delivering frosts significant enough to wipe out tens of millions of dollars of Western Australian crops." They estimate the average loss from frost to be a conservative $400m per annum, with the occurrence and severity of the frost window widening and the number of frost incidences increasing.
Frost inflicts more devastation on crops in Australia than fire and hail, however, until recently multi-peril insurance policies were too broad and too expensive for most growers.
The development of the AWB frost product was based on feedback from growers, including many growers in Western Australia who speak to our local team members, so it is pleasing to see that many growers are taking up the new policy option. The devastating frost of September 2016 is still very fresh for many WA growers, with almost half the state's grain growing regions impacted.
In June this year we launched our industry first broad acre insurance policy with specific add-ons to fire and hail policies for Frost and Crop Establishment Failure. These flexible add-on covers enable growers to insure for specific risks without paying for perils that are not relevant to their business.
The issuing of new frost quotations closed on 31st July in all states except WA. Crop growth delays in WA has meant we are able to continue issuing Frost quotations to our grower customers until 8th August. Please note all AWB quotations are valid for 14 days, so existing active AWB quotes are valid until the expiry date shown on the Quotation. Those customers with active Frost quotations should check the expiry date and act accordingly if they wish to take out Frost cover before the quotation expires.
Quotes for fire and hail and the new add-on covers are easily obtained from your local AWB Representative or visiting http://cropinsurance.awb.com.au/
Link to the WA Department of Primary Industries and Regional Development Frost info www.agric.wa.gov.au/climate-land-water/climate-weather/frost
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