The sharp increase in the cost of building materials is a key factor influencing rising farm insurance premiums, according to rural insurance firm NFU Mutual.
Speaking to the Irish Farmers Journal, a spokesperson for the company said several different factors are affecting the price of insurance for both new and existing customers.
“Many of these are external factors such as inflation, which can impact the price of repairs and rebuild costs.
“However, despite the period of high inflation we are seeing now, not all our customers are seeing an increase in their premiums,” the spokesperson maintained.
The war in Ukraine was highlighted as having an impact on the cost of repair and rebuild work, as the conflict has restrained the supply of some goods.
Likewise, recent COVID-19 lockdowns in China have caused disruption in the country’s manufacturing industry, plus existing global supply chain backlogs and labour shortages have also made materials more expensive.
“There may also be individual circumstances which mean that [insurance] premiums have increased,” the NFU Mutual spokesperson said.
However, they pointed out the mutual bonus scheme remains operational, with a “saving of between 8.5% and 13.5%” available from July 2022 depending on how long each customer has been with NFU Mutual.
“Where individual circumstances mean that premiums have increased, we will engage with those customers in order to better understand their insurance needs,” the spokesperson said.