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GENRIC and Land Bank partnership brings unparalleled insurance, service to agriculture with AgriAsset

05 December 2014 MC du Toit, GENRIC
MC du Toit, CEO of GENRIC.

MC du Toit, CEO of GENRIC.

Strong balance sheets, product suite born from the co-insurance deal.

GENRIC Insurance Company has joined forces with Land Bank Insurance Company in a strategic partnership to offer specialised, tailor-made agricultural insurance designed purely around the needs and wants of the agricultural sector.

The partnership is significant for the agricultural industry, for established and emerging farmers because the two companies are both financially strong, offering skills within their ranks that have been developed from within the agricultural space.

The partnership offers farmers, and agricultural service and product providers, insurance and risk management solutions that are moulded around each individual business within the agricultural sector, from emerging to established businesses.

“We are thrilled to have Land Bank as a partner to service the agricultural sector by means of our specialist skills,” MC du Toit, CEO of GENRIC, says. “Land Bank is very well versed in the agricultural industry. Our footprints and focus combine well that is mutually beneficial.”

Land Bank Managing Director, Mpumi Tyikwe, agrees, adding that the two companies are excellent complements in their value propositions.

“GENRIC is a niche player with highly specialised skills in the agricultural sector,” Tyikwe says. “We align on views and strategy. Land Bank is not merely looking for scale, but for the right partner for the long haul. And we have found it with GENRIC.”

Emerging farmers in the spotlight

The marriage between the two companies comes at a time when emerging farmers are more in need of workable risk management solutions than ever before.

“The larger picture is that we have a well-serviced commercial sector of largely white farmers, while the developmental sector of largely black farmers still has very little penetration in the insurance market,” Tyikwe explains.

He continues: “From a solutions point of view, the developmental farmer is no different from any other farmer. We typically lend developmental farmers anything between R2.5 million and R4.5 million. These are not small numbers.”

GENRIC and Land Bank aim to reach the developmental farmer through a network of astute, knowledgeable brokers who have agriculture-specific knowledge and can bring holistic services and managed assistance to the farmer.

Tyikwe explains that Land Bank has numerous partnerships with institutions that can assist farmers in a more holistic sense. For example, Land Bank has partnered with fertilising companies to advise Land Bank clients on wider operational matters.

“We require the same from our broker partners,” he says.

“The right brokers are well placed to advise a farmer correctly on his risk management options and how to minimise risks,” Du Toit agrees. “The broker community is vital in bringing this product to market.”

AgriAsset – insuring a good year, every year

AgriAsset is the name of the insurance solution offered by the partnership. It will be on offer through Land Bank’s and GENRIC’s networks of preferred brokers, as well as through GENRIC’s underwriting management agency (UMA) African Rand, which is entirely focused on the agricultural sector.

The AgriAsset insurance product, born from this marriage, is set to bring accessible insurance solutions to developmental farmers and their communities, Du Toit adds.

The insurance policy offers insurance, not only to farmers, but also to ancillary service providers within the agricultural industry. These include seed providers, fertiliser producers, equipment suppliers, and more.

AgriAsset caters for the entire chain within agriculture, upstream all the way down within the agricultural environment, excluding retail.

AgriAsset provides insurance, ranging from the farm house, farm buildings and other property, through to the livestock, tractors and other farming equipment, including transport risks, theft, and more, making this a commercial and domestic insurance policy that extends to specifically insure for the farmer and the commercial operations surrounding farming.

The policy is a self-contained, multi-market policy that is designed purely for the agricultural industry and its role players.

It is designed to fit the risk needs of established farmers, as well as emerging, making the AgriAsset a unique offering in agriculture.

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