Author: Glenn Drees,CPCU
The Spring 2023 Food and Agriculture Insurance Market update reveals ongoing challenges in the insurance market for food and agricultural accounts. While the rate of premium increase has slowed for General Liability, Auto and Umbrella insurance, these lines of coverage still experience rate increases. Property insurers have been steadily increasing rates, raising deductibles and implementing stricter underwriting standards in their efforts to return to profitability. However, more work is needed to achieve profitability, and the marketplace for agricultural risks remains limited with few insurers entering the space. The food manufacturing sector faces similar challenges, with a reduction in the number of insurers willing to underwrite this class of business due to continued large property losses at food plants.
Currently, the Food and Agriculture insurance market is witnessing average rate increases of 11.4% over the past four quarters, depending on the risk profile and mix of coverage. However, there's some competition for accounts with a strong loss history, proven management, robust risk control measures and strong balance sheets. In the first quarter of 2023, around 21% of clients experienced rate decreases overall across all lines of coverage.
Looking ahead, it's important to monitor trends in the food and agriculture insurance market, including the availability of capacity and insurance carriers to foster competition and support the industry's needs.View Report