Canada’s agricultural industry pool together for insurance protection

Canadian agriculture businesses are pooling together to form an Insurance Purchasing Group (IPG) in response to trends toward increasing premiums, claims penalties and a lack of specialized insurance. The IPG, dubbed the Risk Management Alliance (RMA), is meant to attract large agricultural businesses from across Canada. Members represent top quartile companies that place a priority on health, safety and training.
Created by Kevin McCredie, president of Sylvite Financial Services and Bob McNaughton, president of Sylvite Agri-Services, the RMA model will provide members with direct access to underwriters who are familiar with the agricultural industry.
McCredie says in light of the recent adverse publicity generated by the Spitzer inquiry, the RMA is a way to enhance transparency and represent actions towards full accountability in the management of insurance premiums.
Groups faced with similar loss risks will pool to form an IPG insurance program as it protects them through lower prices and rate stability. McCredie says an IPG offers multi millions in premiums, which offers protection as even a large single loss will not result in heavy financial repercussions on individual premiums.