Since our beginnings as the insurance department of the Union of Agricultural Cooperatives of Castilla-La Mancha, we have seen how multi-risk insurance has evolved among our Cooperatives. More than 25 years ago when we began to advise many of the Cooperatives in the Region, we signed multi-risk insurance contracts where the total premiums came to represent in many cases up to 2 per thousand of the insured capital.
If it is true that the chapter of “insurance premiums” within the operating account of agri-food companies represented, due to its importance, an investment rather than an expense subject to review every year.
The insurance companies responded to claims seriously and rigorously, as it should be, complying with the insurance contract, but with understanding and a commercial attitude in order to maintain a long-term and beneficial contractual relationship for both the insured and the customer. insurer. Also dignifying our figure as a professional insurance mediator in which our advice is the key to correctly covering the needs of our Agri-Food Cooperatives.
I do not want to say with all this that insurance will be better the more you pay. Well, the key to success is in balance. Balance that has been lost in favor of the insured in the short term, and in the long term it has become a difficult insurance to maintain and preserve.
Since the evolution of industrial multi-risk insurance in the last two decades has been marked by “soft” market conditions with appetite on the part of the insurance companies that have caused adjustments in their conditions and a greater offer of coverage that have resulted in a deterioration in the result of the same companies. Or rather, a price struggle that has caused a significant reduction in insurance premiums collected that causes insufficient technical reserves to pay the accident rate of the insured industries.
Added to this panorama, the turning point was in 2017 and 2018, where losses in the insurance sector were widespread, which has caused a sudden change in trend, which translates into a sharp reduction in the assumption of industrial risks, but in particular of the food sector.
The Companies review the underwriting policies, reducing their so-called “risk appetite”, requiring companies to invest more in fire safety, canceling insurance contracts even without a history of accidents, applying franchises that have even exceeded the million euros and, in the best of cases, strongly increasing the rate if the insured industry wants to renew.
Faced with this new situation, any agri-food industry that keeps its multi-risk insurance contract in force with good conditions has a treasure.
And what are the good conditions? That’s what we are for. At AgroACM, as Insurance Brokers that we are and specialized in the agri-food sector, we maintain collaboration contracts with various insurance companies and we are aware of the risks that concern our agri-food sector.
Based on our experience and knowing the restrictive policies of all insurance companies, we believe we have a solution for almost all Cooperatives.
I say almost all, because those large agri-food industries that have not made a large investment in fire safety are suffering greater pressure from the insurance sector.
In order to respond to our Agri-Food Cooperatives, we have just signed a collaboration contract with an insurance company that knows the agri-food sector of our region very well and offers a multi-risk policy model for small and medium-sized companies that covers the coverage needs of our agri-food cooperatives. .
At AgroACM Correduría de Seguros we are at your disposal to offer you all the necessary advice to achieve that “treasure” that allows everyone responsible for the agri-food industry to sleep peacefully.
You can contact us at 926 546 976 or by email [email protected] o [email protected]