Advisory Report: Current Trends Affecting the Farm & Agribusiness Insurance Market

Dec 6, 2022 / by AAIS

AAIS sat down with Casey Davis, Product Manager of Farm & Agribusiness, to discuss some of the current trends affecting the Farm & Ag insurance market. She also touched on new coverages seen in this insurance space and expanded on some of the modern products offered to insurers by AAIS.

Davis shared, "Some of the trends in the market these days that are having an affect include inflation and COVID, severe cat losses, climate change causing these cat losses, and all of these have an affect on reinsurance." She went on to explain that in order to be able to withstand price increases in this hardening market and across the reinsurance industry, insurers are going to have to increase rates in order to afford it. She also expanded on the reinsurance market, but explained that it's hard to increase prices across the entire market, and those in insurance are going to feel it significantly since they will have to pay the price for the insurance.

"Most likely there will be some mergers or some companies that just can't make it," shared Davis.

She also discussed some new coverages in the Farm & Ag space that are really taking off. "Some of the new coverages include new ways to bring in income from hay rides to corn mazes...they are allowing people to come in and set up their trailers on the farm and they can come in and  pick their own vegetables..." This was one of many ideas that ideas that came during COVID times to give people an option to not be around people but still enjoy time with families.

"We are working on building out the Farmowners products, modernizing the language and providing the policies with more flexibility so they can be built up to what they need to be for their insurers. So, for instance, we are modernizing language and making it consistent across all product lines as well as providing exclusions that are needed, including things like home sharing and some of the agribusiness activities that are happening," said Davis. At the same time AAIS is creating and providing these endorsements with a high level of flexibility for insurers.

Most importantly Davis shared, "We view our Members as partners of ours and we want them to succeed. So, we want to make sure we are providing everything that they need, listening to them and the feedback they are giving us so they can be more successful."

To view the full interview with Casey Davis, please click the video above.

Tags: Insurance, Agribusiness, Farm & Ag, Farming, AAIS Views, Insurance Market, Farmowners (FO), Agriculture

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