“That conversation is critical.”
connected systems, the cloud, or data platforms that are monitoring everything from soil composition to exchanging data with their agronomist. “And when that reliance increases, it introduces a new type of exposure that maybe historically hasn’t been front of mind for farmers or for insurers.” “Cyber risk is not necessarily something that farmers have historically thought of as a primary risk, but increasingly it should be part of the conversation.” Twiggs highlights it’s not just the farm itself. “It’s the risk of your suppliers as well. If a processor or logistics partner suffers a cyber event and shuts down, you’re impacted too.” Elevating the broker conversation
It underlines the importance of being across new developments in the sector – if not ahead of them. By understanding the true lay of the land, and what’s on the horizon, that conversation with a farming client takes on so much more meaning, and so much more importance.
Practical takeaways for brokers: 1. Broaden risk conversations beyond physical assets to include digital and structural exposure. 2. Assess operational dependency on critical machinery and technology during peak production periods. 3. Revisit business interruption assumptions in light of longer repair timelines and specialist parts. 4. Integrate cyber risk, including third-party supply chain exposure, into core renewal discussions. 5. Factor environmental reform and regulatory oversight into expansion and diversification planning. 6. Shift renewal conversations from transactional asset reviews to proactive resilience planning.
Farms are sophisticated, high tech operations, and brokers can elevate the conversations they have for mutual benefit.
Richards says, “We need to be less transactional in the way that we engage with farmers. When you’re transactional, you’re really just doing an autopsy of their asset programme. A more sophisticated and trusted broker should be leading with a discussion centred around risk. “What are your contingency plans for your operation? What does your contingency program look like to manage anything from your supply chain to significant peril events? What is the plan when something falls through the cracks or there’s an event that prevents you from being able to operate?
6 A NIBA Brokers’ Guide: to farming the future
Made with FlippingBook Digital Publishing Software