PoultryWorld: UK: avian influenza insurance deals could lead to some cover issues

Egg packer Stonegate has renewed its insurance offer, in conjunction with NFU Mutual, to bring its producers the most comprehensive avian influenza insurance cover in the market.

Meanwhile, the UK trade press reported that NFU Mutual has taken the decision not to take on new clients for bird flu insurance cover from 1 September, adding it had made this clear when it opened its avian influenza insurance policy earlier this year – the first time it had provided it in 3 years.

The AI Group Insurance initiative, which is funded by Stonegate, is exclusive to its producers, and is designed to protect their free-range and organic egg farmers by offering 6 months business interruption should their poultry be infected with avian influenza. While the 180-day cover is free to Stonegate farmers, producers will be able to decide for themselves whether to purchase additional individual cover.

Adrian Gott, CEO of Stonegate, said take-up of its pilot last year had been very successful: “We had 100% take-up of the policy when we launched the cover last year, which gives an idea of how successful it’s been. We’re in constant communication with our producers about how to create the best possible working environments and reducing risk is a big part of this. I’m delighted to be able to offer our producers the most comprehensive avian influenza cover in the market. It’s another significant step forward in our move to ever closer collaboration with our farming partners,” he added.

But there is concern in parts of the industry about NFU Mutual’s decision not to add new clients outside of the Stonegate deal from 1 September. NFU poultry board chairman James Mottershead said the country was now entering a critical period for poultry producers. As the risk of avian influenza ramps up, so does the “vital need” to ensure adequate insurance cover and protection, he added.

“The NFU will be looking to support any members impacted by changes within the marketplace,” said Mottershead to Farmers Weekly. “We urge any producers who are affected to contact NFU CallFirst [0370 845 8458] for advice and support.”

James Baxter, chairman of the British Free Range Egg Producers’ Association (Bfrepa), whose entire flock of 192,000 layers was culled in 2023 after his birds tested positive for the disease, said it was ‘unfortunate’ that farmers taking out insurance for the first time could no longer insure against avian influenza. “It is a real shame that we find ourselves in this position,” said Baxter, who farms near Stranraer, adding, “There could also be many farmers with banking facilities where [avian influenza] insurance is expected to be in place who could now be left without cover.”

NFU Mutual said that customers who have a policy that renews after 1 September will still be offered renewal terms. But there are fears in the industry that these terms are becoming increasingly costly.

The government compensation scheme pays out on a sliding scale according to bird age.