The agriculture industry has shifted dramatically – but not insurance
Insurance News
By
Gia Snape
Canada’s agricultural industry has shifted dramatically over recent decades. However, change within agriculture insurance has not kept pace, according to one managing general agent (MGA) catering to the sector.
Mass consolidation, the next generation of farmers taking over, and advancing technology have made an indelible mark on agriculture, according to First Acre Insurance CEO Robin Shufelt (pictured).
“We haven’t addressed those changes in a full way,” she told Insurance Business.
“The farms are getting bigger, they’re purchasing each other, and they have more expensive equipment. All that drives up their limits.
“We talked to farmers who had four different policies with different carriers, which became cumbersome and it’s a challenge for them. We also found that a lot of the insurance offerings that were out there today weren’t necessarily specific to the needs of farmers today.”
Top insurance concerns for Canadian farmers and farm businesses
Broker and farmer feedback informed the development of First Acre’s new agricultural platform.
According to Shufelt, insurance to value and having the right tools to address their risks were two significant concerns expressed by farm clients.
“Equipment was a big one. All the big equipment they use is expensive, and if one fails, from a farming perspective, [equipment] can be quite challenging,” she said.
“But they’re also finding is that they would have a piece of equipment on day one, but in a year, their current provider couldn’t insure it anymore because the value had changed, and so that was causing problems as well.
“Farmers are also entrepreneurial, and they will run different businesses as