AG Direct Hail Insurance | New service tailored to internet-savvy farmers who don’t mind doing their own paperwork
An Ontario hail insurance broker is trying to entice tech savvy farmers to buy top-up hail insurance through his online company.
Bruce Lowe of AG Direct Hail Insurance said the service would be for farmers who want lower premiums and don’t need a hand to guide them through their paperwork.
“There’s a new breed of farmer that is far more internet savvy and is looking for ways to cut costs,” said Lowe of Burlington, Ont.
In Alberta, farmers must buy their maximum $150 per acre hail insurance through AFSC, the provincial insurer, before buying up to $200 an acre through his company.
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In Manitoba, farmers must buy the maximum $200 an acre hail insurance through Manitoba Agricultural Services Corp. before buying up to $200 an acre through AG Direct Hail Insurance.
In Saskatchewan, there is no require-ment to buy insurance through Sask-atchewan Municipal Hail Insurance before buying up to $200 in insurance.
Farmers buying online will save an estimated 10 to 15 percent in premiums because AG Direct doesn’t pay brokers or sales agents, he said.
Lowe said online businesses are increasing, and he believes farmers are ready to buy additional hail insurance on line for less money.
“It’s an untouched market,” he said.
“Many people think farmers just plod along and that producers are good old boys and not that internet savvy. I completely disagree.”
Lowe said he originally wanted to become partners with the three provincial insurance companies and have them share hail insurance data when farmers made a claim.
However, the provincial companies refused to share private information.
Instead, Lowe will rely on farmers from Alberta and Manitoba sending in their copies of payout information from the provincial agency. He will base his payout on the provincial claim payout.
“I want to complement, not compete with the government program.”
In Saskatchewan, AG Direct will send out its own hail adjustors.
To limit risk, AG Direct will sell only a maximum $800,000 worth of hail insurance in each township.
“It’s all about risk and risk management,” said Lowe, who is travelling across the Prairies promoting his new online insurance company.
Alberta Federation of Agriculture president Lynn Jacobson said farmers with high value crops often buy hail insurance from two or three companies.
Whether farmers choose AG Direct depends on price.
