Page 9 - Hooked On Herefords Magazine October 2018

A changing tide of claims

AonAgri, New Zealand’s leading rural insurance brokers.

Did you know that in 2017, New Zealand experienced a frequent, and the effects of storms and flooding have resulted in
whopping 15 declared states of emergency? From floods to record numbers of weather-related claims.
storms, it proved to be the country’s single most expensive There are also changes developing around the types of farm asset
year on record for weather-related losses, with the total value of claims. Perhaps a sign of changing times and the development
insured losses adding up to more than $242 million. of new technology is the number of farm buildings that are now
More than ever, New Zealander’s who work in the agriculture surplus to requirement and empty; the construction of buildings
industry are seeing the importance in preparing for an increasingly such as haybarns and implement sheds are not designed to be
varied suite of potential risks to their farm or business. With many empty and these obsolete buildings quickly become vulnerable
of these risks outside the scope of more traditional farm related to damage. Insurers are seeing more claims around damage to
incidents however, knowing where to start and keeping your buildings such as these than ever before.
fingers on the pulse can be difficult - farming after all, is a unique Other shifts in key claims include claims related to vehicles
business and every situation is different. We recently interviewed being stolen with keys left in them and the growing issue of
two of New Zealand’s leading rural insurance companies to Meth Contamination.
discuss some of the key claim trends that are emerging as we
move into 2019, with a view that equipping ourselves with the Tips of the trade:
latest insights is a crucial component in creating resilient plans In the interest of helping clients keep premiums down and
and insurance solutions for our clients. ensuring good claims outcomes, our insurers had some handy
tips:
What are some of the key claims that have come through • Consider Indemnity Cover as an option for unwanted
from the past year? buildings, or buildings that are unlikely to be re-built
• Storm and weather-related damage claims • Explore higher excess as an option, particularly on farm
• Meth contamination claims, which are rapidly rising across buildings and houses
the country • Ensure you have a broker to be an advocate on your behalf
• Fire related claims – from birds nests in vehicles through to at claims time
house fires caused by wiring issues • Take advantage of the benefits that are included with your
• Windscreen claims on tractors and high-value farm vehicles farm insurance e.g. automatic flood cover on farm fencing to
• Burglaries in rural areas continue to increase $25,000 or Vero’s Best Doctors service which is invaluable
in rural areas.
How have claim trends changed in recent years?
As we move into the final months of 2018, the climate change You can reduce claims by:
conversation has been met with the urgency to prepare on • Maintaining buildings and equipment (including regular
both a national and local level; this is being strongly felt in the inspections of workers/tenanted dwellings as per conditions
insurance industry and in the agricultural sector. Climate change of policy, particularly for meth cover)
impacts on individuals and businesses alike are indicated in • Employing quality staff and investing in quality training
both the increasing number of claims and in the growing interest • Having a strict and compliant H&S plan
around preparation for climate change-related incidents. • Tightening up on security e.g. removing keys from bikes and
Similarly, natural disasters are becoming more and more quads

NZ HEREFORD ASSOCIATION NEWSLETTER 9