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Assetinsure axes crop cover as take-up underwhelms

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Assetinsure has dropped its crop insurance product, blaming a slow farming sector and lack of government subsidies.

However, CEO Gregory Pfitzer has left the door open to a return if awareness of the cover’s value improves “among farmers and governments”.

He told insuranceNEWS.com.au Assetinsure committed significant resources to developing and underwriting a multi-peril crop insurance he described as “outstanding”.

“Regrettably, the take-up within the farming sector has been low, an experience shared by other insurers offering a similar product,” Mr Pfitzer said.

“Unlike many countries… there has been no relevant support or subsidisation of this insurance cover from Australian states or the Federal Government, which has underpinned the approach of other countries in avoiding ‘picking up the pieces’ of natural disaster and crop failure for farmers.”

Customers who bought policies this year will be covered through next year as per policy terms and conditions.