A recent survey conducted by the Irish Farmers Journal revealed that almost three-quarters (74%) of farmers have seen insurance costs increase this year. This is despite an increase in providers of farm insurance in the Irish market.

The online survey with 409 respondents found that three in 10 people have changed insurance provider in the last three years.

Five years ago, FBD was the main provider of insurance to farmers. Today, while FBD still has the largest share, new entrants such as Zurich and Axa are making inroads, with 23% of survey respondents saying they have their insurance with these companies.

Almost 33% of respondents were paying less than €2,000 for insurance. However, four in 10 farmers were paying more than €4,000 on their premium per year.

The increases were seen across the range of prices. Almost 70% of those paying under €2,000 for insurance saw their premiums increase. Meanwhile, nine in 10 farmers who pay more than €10,000 saw their premiums increase in the last year.

The survey also found that premiums rose. Some 80% of respondents insured with FBD saw their premium rise, along with 65% of respondents insured with Axa, 61% of respondents insured with Zurich and 70% of those insured with brokers in the past year.

Competition heats up but insurance continues to rise

This increase in competition should be positive for farmers in terms of lower insurance. However, the opposite is the case. Insurers blame big payouts and the high cost of claims for the increase.

One thing is clear from our survey. Just over a quarter (26%) of the survey respondents said they had not seen their insurance cost rise. This could have been because more than a third (38%) of these farmers had changed provider in the last three years.

Purchasing adequate insurance is an important aspect of business planning. We have created three different farming enterprises to get an indication of what insurance cover should cost.

The Irish Farmers Journal contacted the leading insurance companies on the market for farm insurance quotations based on the detail in the tables. The price ranges of the quotations are shown on these pages.

The most important thing for farmers is to shop around and fully understand what cover and value they are getting. We have purposely left the names of the insurers off as the quotes are only price guides. It is important for farmers to understand the small print and compare like for like. The most expensive insurance is the one that leaves you short in case of a claim.