Insurers push for MPCI recommendations

PROVIDERS of multi-peril crop insurance (MPCI) are calling on the State and federal governments to listen to key recommendations from a New South Wales regulator regarding the emerging sector.

The final Independent Pricing and Regulatory Tribunal (IPART) multi-peril crop insurance review report was released recently and continued to suggest an upfront subsidy on premiums would be the most effective means of getting growers to take out MPCI.

Multi-peril crop insurance could provide government with a sustainable way of implementing drought policy according to the Australian Farm Institute.

Multi-peril crop insurance could provide government with a sustainable way of implementing drought policy according to the Australian Farm Institute.

Support for the subsidies had been  watered down, with IPART suggesting subsidies only be provided initially, however it reaffirmed support for some form of subsidy at least in the short-term.

IPART is an essential services regulator in NSW.

Darryl McCrae, director of MPCI provider Sure Season, said he did not mind the subsidy only being offered initially.

“We generally find people are happy with the product once they start using it, there is just that reluctance to make the jump,” Mr McCrae said.