Rural Affinity has renewed its partnership with Munich Re Specialty – Global Markets under a new five-year agreement, continuing a collaboration that began in 2006.
The agreement is expected to support Rural Affinity’s efforts to expand its agricultural insurance offerings across Australia and introduce new products leveraging technology and innovation.
The company has paid over $500 million in claims to farming clients since its inception, with Munich Re providing reinsurance support throughout this period. The extended partnership aims to address gaps in agricultural insurance coverage across the country.
James Hooper, managing director of Rural Affinity, said the renewed agreement ensures ongoing cooperation between the two firms.
“We are delighted to sign a new partnership agreement with Munich Re Specialty. From the inception of Rural Affinity in 2006, Munich Re’s expertise has been instrumental for us to achieve our goals and ambitions. They have a detailed understanding of our business and the important solutions we provide to the agricultural industry in regional Australia,” he said.
The extension of this agreement comes as Australian insurers continue to navigate climate-related risks and strengthen their sustainability commitments.
In December, the Insurance Council of Australia (ICA) released the 2024 edition of its “Climate Change Roadmap,” detailing insurers’ progress toward reducing emissions and adapting to climate-related regulatory changes.
The report, “Towards a Net-Zero and Resilient Future,” outlined the commitments of ICA members, including strategies for achieving net-zero emissions.
According to survey findings in the roadmap, 85% of insurers have set a net-zero target for 2050, with half aiming to achieve operational net-zero by 2030. Additionally, 63% have incorporated climate-related performance metrics into executive compensation structures.
To support the industry’s transition, ICA has implemented several initiatives, including:
ICA chief executive Andrew Hall noted that extreme weather events currently result in around $4 billion in annual costs for Australian homeowners, with overall economic impacts projected to rise to $35.2 billion per year by 2050.
He highlighted the role of insurers in mitigating financial losses from climate-related disasters.
“Our members are stepping up to the plate by preparing for climate disclosures and taking action now to reduce emissions,” Hall said.
