Avian influenza insurance now closed to new customers

One of the UK’s leading providers of avian influenza insurance cover to UK poultry farmers has closed its books to new customers.

From 1 September, NFU Mutual says it will not take on new clients for bird flu insurance cover, but insists it made this clear when it opened its avian influenza insurance policy to all new business from 1 April 2024 – the first time it had provided that in over three years.

See also: Avian influenza prevention tips and how to handle an outbreak

This development could leave farmers vulnerable to significant losses in the event of a disease outbreak this winter, despite a government compensation scheme which pays out on a sliding scale according to bird age.

The UK does not currently have outbreaks of highly pathogenic avian influenza in poultry or other captive birds – the last outbreak occurred between October 2021 and March 2024.

However, the virus continues to be found in wild birds and there have been cases in poultry and other captive birds in several European countries, most recently on a mixed poultry farm in Brittany, north-west France.

Critical period

NFU poultry board chairman James Mottershead said the country was now entering a critical period for poultry producers.

As the risk of avian influenza ramps up, so does the “vital need” to ensure adequate insurance cover and protection, he added.

“The NFU will be looking to support any members impacted by changes within the marketplace,” said Mr Mottershead.

“We urge any producers who are affected to contact NFU CallFirst [0370 845 8458] for advice and support.”

Unfortunate

James Baxter, chairman of the British Free Range Egg Producers’ Association (Bfrepa), whose entire flock of 192,000 layers was culled in 2023 after his birds tested positive for the disease, said it was “unfortunate” that farmers taking out insurance for the first time could no longer insure against avian influenza.

“It is a real shame that we find ourselves in this position,’” said Mr Baxter, who farms near Stranraer.

“There could also be many farmers with banking facilities where [avian influenza] insurance is expected to be in place who could now be left without cover.”

Egg packers

Packers Stonegate and Noble Foods provide insurance cover to their suppliers.

Stonegate is confident that new applicants to this scheme will not be affected.

“Last year, on behalf of its farmers, Stonegate attained a first-of-its-kind avian influenza insurance policy in conjunction with NFU Mutual,” said a spokesperson.

“It remains the largest packer-funded scheme in the country and is available to both new and existing Stonegate farmers.”

NFU Mutual said that customers who have a policy that renews after 1 September will still be offered renewal terms.

Payouts capped

However, some egg producers have reported that premiums have become unaffordable and underwriters had capped maximum payouts too.

Producers will now find themselves in the position where they need to “self-insure” by putting money aside in the event of an outbreak.

In a statement, an NFU Mutual spokesperson said the highest risk from avian influenza is generally from October to March.

“By only opening for new business outside of this volatile period, we can ensure that we are able to continue to provide a sustainable, viable insurance product for customers both this year and in years to come.”