Common ASF insurance on the way

In a few months, Danish Farmers Abroad expects to have a new joint insurance against African swine fever ready.

Right now, we are collecting material to be used as a basis for us to get a good offer for an insurance against African swine fever and other diseases such as PRRS, PEDv and classical swine fever,

says Jens Peter Aabyen, who is leading the project and Group Legal at Goodvalley.

So far, 15 farms with a total of 165,000 sows have each paid 5,000 Euros to write a White Paper as a basis for obtaining an insurance offer.

The 15 farms have also agreed to support with a total of just above 200,000 Euros to pay the highly esteemed insurance broker AON to help get insurance with the best possible terms,

says Jens Peter Aabyen.

Initially, only members of Danish Farmers Abroad can take out the insurance. But if the scheme becomes a success, other farms can also come along.

As a starting point the insurance must as a minimum ensure compensation for the herd but also preferably for operating losses and other related losses. On the other hand, it is probably harder to get the insurance to cover the losses that might occur if the operation is going to be placed in a protection zone without it even being affected by disease.

There are already Danish farms abroad that have taken out insurance against African swine fever, but in many cases the coverage is insufficient

Goodvalley currently has an insurance against swine fever in Russia, but we do not know if we will also have it next year as it is renegotiated on an annual basis

One of the reasons for the great interest in insurance is claims from the capital markets. They want security for their investments and loans and an insurance against diseases makes agriculture a more attractive investment, and this is an advantage in a situation where a farm is to be sold or listed.

For some farms, African swine fever can be completely fatal. An insurance can be the difference between its death or survival

says Jens Peter Aabyen.

He predicts that it will not be a single insurance company that takes on the challenge of creating a reasonable insurance but rather a syndicate of several insurance companies.

Renegotiation every year

Although there will be an agreement on both the terms and the price of an insurance, the policyholders must expect that the companies demand an annual renegotiation.

If a disease breaks out in one or more of the farms’ herds or in the countries in which the farms are located, we foresee that the insurance companies will want the opportunity to change the terms and the price of the insurance

says Jens Peter Aabyen.

He also expects that other insurances, such as building, car and crop insurance, may be transferred to the company.

 

Original DK article By Einar Bo Thomsen, Landbrugsavisen. Freely translated by Goodvalley

Link to original DK article: https://landbrugsavisen.dk/mod-svinepest-fælles-forsikring-på-vej

 

 

 

 

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