Ryan Milgate, a grain grower in western Victoria, highlighted the financial strain: "Insurance bills have been rising for the past three or four years and, just looking at ours, we have more than doubled since pre-COVID levels." He noted that the escalating costs are compelling farmers to reconsider their coverage options, with some opting to self-insure certain machinery to manage expenses.
The Insurance Council of Australia acknowledges that erratic weather patterns are a primary driver of these premium increases. A spokesperson stated that wherever you live or work in Australia, whether you're directly exposed to extreme weather impacts or not, premium prices are rising because of the escalating costs of natural disasters, the growing value of our assets making them more costly to replace, inflation driving up building and vehicle repair costs, and the increasing cost of capital for insurers.
In response to these challenges, farmers are urged to conduct thorough risk assessments and explore diversified insurance options. Engaging with insurance brokers to tailor policies that align with individual farm operations and risk profiles can provide more manageable solutions. Additionally, investing in climate-resilient infrastructure and practices may help mitigate some risks associated with extreme weather events.
As the agricultural sector continues to navigate these financial pressures, collaboration between farmers, insurers, and policymakers will be essential in developing sustainable strategies to protect both livelihoods and the broader food supply chain.
