Liberty Specialty Markets (Liberty or LSM), a subsidiary of Liberty Mutual Insurance Group, is set to provide bushfire and hail insurance coverage for Australia’s vine and orchard growers for the 2024/25 growing season.
The move comes as unpredictable weather and a high claims environment have led many insurers to exit the market, leaving many growers without coverage.
Liberty’s bushfire and hail insurance policy combines parametric and traditional insurance elements. It uses satellite technology to measure bushfire impact and physical inspections to assess hail damage.
Premiums for the coverage begin at approximately $10,000 and protect against loss of earnings due to hail damage and loss of vines and trees from fire.
Commenting on the company’s coverage, Michael Lincoln, head of Liberty’s Australian weather team, highlighted the urgency for brokers to secure policies for their clients.
“Policies for the upcoming growing season need to be in place by the end of September, so now is the time for brokers to be thinking about their agricultural clients,” he said.
Lincoln said the company conducted an extensive analysis on the frequency of hail in the country.
“Erratic weather and an active claims environment has seen many insurers pull out of this market in recent years. We know many growers are now uninsured against bushfire and hail damage,” he said. “At Liberty, we’ve done a lot of analytical work on hail frequency in Australia, and have a scientific approach to pricing. Traditionally, hail frequency has been hard to predict, and we’ve worked with a third party to study and map hail impact to allow us to remain committed to our growers.”
Liberty’s insurance products are suitable for a variety of tree and vine crops, including grapes, almonds, macadamias, olives, stone fruit, and citrus.
Globally, Liberty is a major agri-insurer and reinsurer with specialised teams in Paris and Australia. The company offers a wide range of weather-related insurance products.
The launch of the bushfire and hail insurance coverage for Australia’s vine and orchard growers follows the appointment of Andrew Jackson as the new global head of business development and market management.
