Stable price - commodity price insurance TFF member 8% discount

[warksfarmer]

Not true. You are insuring it will still be £154 in November, 8-9 months away. You can’t sell at £170 and deliver in November based on current market, but November futures are around about £155?

You choose the length of the insurance when you get your quote though so it varies. Mine was merely one example that’s all

 

[7800]

Is this another organisation that will sell you an umbrella that doesnt work when it is raining?

Anyone remember the highly respected and backed by millions Agrimarche ?
When it came to a big payout due (market moved way below many options) they went bankrupt
There’s not much payout on the small normal price movements , it’s the big price drop that will test it

 

[tr250]

As with most insurance I think you would be better to put premium in a account and use it when you needed it there is usually only one winner. Insurance brokers and bookies are very similar in my mind

 

[buffalo_soldier]

There is no right or wrong answer with stuff like this.
I'm in the would like to see it tested first camp as well I think.

I do think we will see more of this sort of thing in the future though.
I think Gove has said several times now that he prefers this US style insurance over the EU style subsidy system.
Not sure if it's state aided in the US though.

 

[NLF]

I'd be interested to learn how it works, especially for products where there isn't a futures market to lay off risk. It's not clear from their website.

Someone said above that they are backed by billions. Whose billions? Stable Group has £14k of shareholders equity. Their address Is the farmers club in Whitehall. They are registered with the FCA but as a representative organisation. According to their website they act for Bluefriars Brokers, a company with 20k equity.

By comparison, NFU Mutual has around £7bn shareholders equity so yes, if they offered it at a reasonable price I'm sure it would sell.

Out of interest, does TFF receive anything for promoting this scheme?

 

[Bob]

0.8 p/l ?
Richard spoke to our discussion group last week, nearly didn't go as I thought it would be boring!
Was quite fascinating!
Based on up corn/down horn principle and masses of calculations and the fact that not everyone will insure the same drop, so if the milk price drops so people will be paid but some won't has they will have not taken cover for a big enough fall.
Not sure I have explained that very well but backed by billions so should be safe!

Backed by Billions?? Not sure where there is any evidence of that !! A little trawl through Companies House Data shows its all rather new

 

[Grain Buyer]

I've read pages of debate, but has anyone done anything yet? Looking at the website there will be some big wages to pay.

 

[Clive]

I'd be interested to learn how it works, especially for products where there isn't a futures market to lay off risk. It's not clear from their website.

Someone said above that they are backed by billions. Whose billions? Stable Group has £14k of shareholders equity. Their address Is the farmers club in Whitehall. They are registered with the FCA but as a representative organisation. According to their website they act for Bluefriars Brokers, a company with 20k equity.

By comparison, NFU Mutual has around £7bn shareholders equity so yes, if they offered it at a reasonable price I'm sure it would sell.

Out of interest, does TFF receive anything for promoting this scheme?

To answer your last point - no not yet ! But we have got a 8% iscount for TFF members registering via the link

Does anyone do anything for nothing ? (NFU certainly don’t in my experience) And is that a reasonable expectation ?

 

[Clive]

I am going to the launch tonight - if anyone has any questions they want me to ask post them here and I will ask them later !

 

[An Gof]

I am going to the launch tonight - if anyone has any questions they want me to ask post them here and I will ask them later !

I’m on a train on the way to the launch as well

 

[LauraR]

I'd be interested to learn how it works, especially for products where there isn't a futures market to lay off risk. It's not clear from their website.

Someone said above that they are backed by billions. Whose billions? Stable Group has £14k of shareholders equity. Their address Is the farmers club in Whitehall. They are registered with the FCA but as a representative organisation. According to their website they act for Bluefriars Brokers, a company with 20k equity.

By comparison, NFU Mutual has around £7bn shareholders equity so yes, if they offered it at a reasonable price I'm sure it would sell.

Hi,
I'm a Stable employee and I thought I would jump on and answer the questions relating to where the capital is coming from to cover the Stable policies...

Stable is a Coverholder at Lloyds and all the policies are underwritten by certain underwriters at Lloyds (Ascot Group Ltd). Here is a link to a page which describes how Lloyds supports its underwriters and the pools of money available https://www.lloyds.com/about-lloyds/what-is-lloyds/stability-and-security

I hope this offers some reassurance.

 

[LauraR]

It’s only worth it if you think we are going to see very wild price drops. The normal ups and downs and it’s a waste of money.

Today’s price £170 for wheat
Insurance start price £154
Insurance stop price £85

So the first £16 loss you can’t claim on which is normal annual movements. Also in a total collapse you can’t claim as it would be circa £60.

And the insurance itself costs about £5 which is the same as options isn’t it?

In the scenario above where the average prices at the end of your contract have fallen by 65% you would receive a settlement of £69/t (i.e. £154-£85). By having the stop price the premium is considerably more affordable.

 

[marshbarn]

Hi,
I'm a Stable employee and I thought I would jump on and answer the questions relating to where the capital is coming from to cover the Stable policies...

Stable is a Coverholder at Lloyds and all the policies are underwritten by certain underwriters at Lloyds (Ascot Group Ltd). Here is a link to a page which describes how Lloyds supports its underwriters and the pools of money available https://www.lloyds.com/about-lloyds/what-is-lloyds/stability-and-security

I hope this offers some reassurance.

Sanctions limitations No insurer shall be deemed to provide cover and no insurer shall be liable to pay any claim or provide any benefit under your policy to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America.


This is a paragraph from the exclusion clauses, it seems to me that any brexit export to the EU tarif or ban would mean no payout on the policy for insuring a wheat price drop.
Is that a correct reading Laura?

 

[David.]

I am going to the launch tonight - if anyone has any questions they want me to ask post them here and I will ask them later !

I’m on a train on the way to the launch as well

How was it then chaps?

 

[Clive]

How was it then chaps?

Really very interesting and I have a much better understanding of what’s gone into this, how it works and whose behind it

It works on the old but simple principle of “up corn down horn” ie that when arable is doing well livestock isn’t and visa versa

For an insurance company this provides the hedge they need - ie by covering both sectors they are off setting the risk and can (via clever algorithms) offer an insurance product to either

Effectively it turns the rollercoaster risk profile of our grain or livestock only businesses into the more balanced model of a mixed farm

There is no issue with security - Lloyd’s are the underwriters and there are few more credible names in insurance than that.

Richard has done amazing things to make this happen and hats off to him and the team he has assembled , I can see it hasn’t been easy or cheap to get this far and I can see see this extra tool in the box will be of great benfit to farmers

I also got to talk to @Guy Smith and George Eustace ......... and they had beer

 

[NLF]

To answer your last point - no not yet ! But we have got a 8% iscount for TFF members registering via the link

Does anyone do anything for nothing ? (NFU certainly don’t in my experience) And is that a reasonable expectation ?

Eh? Yes, lots of people do things for nothing. No one is paying me to type this. But it would be nice to be able to distinguish between an advert and an honestly held opinion. I know this site is a business but you should make it clear what is a paid promotion.

So if I click through and buy this insurance how much will TFF get paid? Also if you are taking a cut I think you may have to be FCA registered! Be careful. Lots of rules around marketing financial services.

 

[Clive]

Eh? Yes, lots of people do things for nothing. No one is paying me to type this. But it would be nice to be able to distinguish between an advert and an honestly held opinion. I know this site is a business but you should make it clear what is a paid promotion.

So if I click through and buy this insurance how much will TFF get paid? Also if you are taking a cut I think you may have to be FCA registered! Be careful. Lots of rules around marketing financial services.

I”m posting about my interest in this scheme as a farmer who may well use it in the future. I genuinely believe it’s a very interesting new tool and would not say so if that wasn’t the case . No one pays me to post anything, my views and opinions are my own.

If you use the TFF link to buy insurance you will get a 8% discount - TFF will get 2% that’s a good deal all round imo - I know of no other way to get 8% off Stable premiums ?

Anyone else offering Stable discounts will also be benifiting from their referral but much more than 2% I suspect !! Is anyone else offering 8% discount ? - we are not greedy but we have costs to cover and staff to pay and don’t run banner adds for anyone without payment, in fact most pay far more than Stable do (which is nothing so far Btw) we don’t usualy do affiliate marketing but in this case we like the product and people, think it’s genuinely of value to our industry and wanted to be able to offer TFF members a higher level of discount than others will do. Do you really expect TFF to run on fresh air and simply for your benifit ?

Maybe you should tell us a bit more about yourself ? Who you are ? Where your from ? How your business works ? Financial and accounting details or your business ? George Eustace and Guy Smith we’re both at the launch as well, both spoke very positively and enthusiastically about Stable - are you going to demand they answer your questions as well ?

8% TFF discount is as good as (probably much better than ) you’re going to see elsewhere if you want to use this facility. We are happy to be able to help users of this site access that discount they can’t get elsewhere - if you don’t want to use it then don’t sweat about it, no one is forcing anyone to do anything !

 

[NLF]

Hi,
I'm a Stable employee and I thought I would jump on and answer the questions relating to where the capital is coming from to cover the Stable policies...

Stable is a Coverholder at Lloyds and all the policies are underwritten by certain underwriters at Lloyds (Ascot Group Ltd). Here is a link to a page which describes how Lloyds supports its underwriters and the pools of money available https://www.lloyds.com/about-lloyds/what-is-lloyds/stability-and-security

I hope this offers some reassurance.

Thanks, So Stable has a delegated authority to write business into Ascot's Lloyds syndicate. All is clear.

 

[NLF]

I”m posting about my interest in this scheme as a farmer who may well use it in the future. I genuinely believe it’s a very interesting new tool and would not say so if that wasn’t the case . No one pays me to post anything, my views and opinions are my own

If you use the TFF link to buy insurance you will get a 8% discount - TFF will get 2% that’s a good deal all round imo - I know of no other way to get 8% off Stable premiums ?

Anyone else offering Stable discounts will also be making from their referral but much more than 2% I suspect !! Is anyone else offering 8% discount ? - we are not greedy but we have costs to cover and staff to pay and don’t run banner adds for anyone without payment, in fact most pay far more than Stable do (which is nothing so far Btw) we don’t usualy do affiliate marketing but in this case we like the product and people, think it’s genuineky of value to our industry and wanted to be able to offer TFF members a higher level of discount than others will do. Do you really expect TFF to run on fresh air and simply for your benifit ?

Maybe you should tell us a bit more about yourself ? Who you are ? How your business works ? Details ..... or is it just me who is expected to run everything I ever do past each and every forum member for approval before I do anything ?

Thanks for clarifying that. And sorry if I caused offence, but i think it is useful to know a product is being promoted via posts as opposed to banner adds which we all know are paid for.

I work in finance and have a modest knowledge of the insurance industry. I also farm (but wouldn't claim to be a farmer). Hence my interest in this product and how it works. I shall investigate further...

 

[Clive]

Thanks for clarifying that. And sorry if I caused offence, but i think it is useful to know a product is being promoted via posts as opposed to banner adds which we all know are paid for.

I work in finance and have a modest knowledge of the insurance industry. I also farm (but wouldn't claim to be a farmer). Hence my interest in this product and how it works. I shall investigate further...

To be clear I’m not recommending Stable, I can’t as I’ve not used it yet ! - I’m just making TFF members aware that there is a 8% discount deal for them that I doubt they are going to get from others - in exchange for that discount and 2% for TFF the forum is running some of Stables promotional banners on this website