…F&M caution farmers about the placement of their insurance
In light of Wellgrain administration we continue to caution farmers about the placement of their insurance, dealing with reputable UK regulated insurers is an important factor, but how is the farmer to know if their insurance is NOT placed with a UK regulated insurer, firstly you should be notified but ask the question – even better ask for it in writing. In most firms these issues are monitored closely and signed off at the top. Dealing with a firm that doesn’t specialise in your sector could force them to source from overseas regulated insurers.
At Farmers & Mercantile we solely focus and specialise in FARM INSURANCE.
Working for farmers as an insurance intermediary F&M take great care in assessing the placement of insurance to avoid leaving our clients with no cover should an insurer go into liquidation. We have recently seen the receivership situation leaving farmers unpaid for grain by the failure of Wellgrain, unfortunately these types of firms do not offer the protection seen in the financial services industry. The Financial Conduct Authority takes capital adequacy seriously in its regulation of insurance intermediaries, requiring them to report at least twice a year. If any UK regulated insurance firm were to go into liquidation there is a compensation scheme to protect their customers. This may not be the case for overseas insurers.