From: Captive Intelligence
- Group captives and cooperatives are a common way of diversifying risk in the sector
- Having funds available to form a captive an issue for some in the industry
- Crop insurance and employee benefits provide challenges unique to agriculture
The agriculture sector provides a unique opportunity for the captive industry to help organisations mitigate rising costs in the commercial market.
Group captives and cooperatives are commonly utilised in the agriculture space as industry members look to band together to diversify their portfolios amid growing challenges.
Like most industries, property cost is one of the main insurance issues facing agriculture, while crop insurance is providing a unique set of challenges for the sector.
Healthcare is another risk where the agricultural sector offers a distinctive set of challenges, with many in the industry having limited access to health facilities.
Julie Patel, senior vice president, central zone captive consulting leader at Marsh, said that because of the unpredictability of the insurance market, agriculture captives are increasingly looking for alternative financing solutions.