Stable price - commodity price insurance TFF member 8% discount

[Banana Bar]

I confess that I haven’t looked at this in any detail whatsoever and also admit I’ve jumped straight to the last post.
Does the insurance need to be covered on physical produce or am I just buying options in a different format?

 

[richardcounsell]

What do you mean by this?

Hi @david We wanted to make using stable as flexible as possible. To help with cash flow all premium can be paid monthly by direct debit. The other good reason for doing this is that you can cancel the insurance contract at anytime, if for example you can see the price of feed wheat is likely to stay high and your insurance contract is unlikely to payout. You don’t get a refund for the months that have been paid already, but you are never locked into paying for a contract that may not payout because the physical price has stayed high or a cost like fertiliser has stayed low. After cancelling you could choose to purchase a contract with a different floor price that was more likely to payout (but you don’t have to)

 

[dirty harry]

There’s no commitment to see it through to full term if prices are going up?

 

[richardcounsell]

Correct you can cancel at any time if the index price stays high- no need to pay for something that isn’t going to protect your farm.

 

[David.]

Is payment by premium front loaded to take account of this fact then?
I suppose weighing against this freedom to dump the insurance when prices look set to spike is the fact that spikes are often short lived. I suppose I am wondering what is in it for you, if half the policies only make premium payments for about 4 months?

 

[Oscar]

I applied last night and got to the password page but nothing happened other than "Back" which then meant I had to say how many ha s of crops and enterprises I had. I was expecting a Next button or Finished button ? Not sure if I m registered or not ?

 

[Clive]

I applied last night and got to the password page but nothing happened other than "Back" which then meant I had to say how many ha s of crops and enterprises I had. I was expecting a Next button or Finished button ? Not sure if I m registered or not ?

@richardcounsell or @LauraR ?

 

[LauraR]

I applied last night and got to the password page but nothing happened other than "Back" which then meant I had to say how many ha s of crops and enterprises I had. I was expecting a Next button or Finished button ? Not sure if I m registered or not ?

HI Oscar,

Happy to have a chat - our number is 02038599390.

But i think this may have been because we require the passwords to have an uppercase, lower case, number and symbol. Once a password is created with these features then the next button appears.

 

[LauraR]

Unfortunately, as the password was not created then you are not registered.

Do give me a bell if i can help.

 

[LauraR]

Is payment by premium front loaded to take account of this fact then?
I suppose weighing against this freedom to dump the insurance when prices look set to spike is the fact that spikes are often short lived. I suppose I am wondering what is in it for you, if half the policies only make premium payments for about 4 months?

Hi David, no the premium is not front loaded when you set up a DD; it is split evenly between the time you purchase the policy and when it ends.

 

[Oscar]

@LauraR thanks for reply. Not able to deal with it now but maybe later. PS I now see "symbol" thats the reason !!!

 

[richardcounsell]

Just thinking do you have any plans to do a Euro currency forward price? With what’s happening at mo could be an idea to lock bps £ before € drops any more? Cheers dh

Not yet is the short answer but maybe one for the future

 

[Goweresque]

I have to say that the website is not very good - the opening page is an invite to dive straight in and get a quote. Why aren't there some pages that explain exactly whats what, how it works, what the legals are etc etc?

Or (and this is just me with my ultra cynical hat on, which I seem to be wearing more and more these days) a way of getting everyone interested to provide all their data which can then be used for marketing and sold on to others for £££?

 

[richardcounsell]

Hi @Goweresque I agree entirely that the landing page needs to explain more before you get a quote and this will all be added very shortly now we know the questions people have. In terms of Data, we're not remotely interested in farm data, only what we need to operate a regulated insurance business and make sure we're helping farmers not speculators. The FCA and Lloyd's regulate us so our use of basic contact data is protected by two regulatory bodies. Hope that helps

 

[richardcounsell]

I confess that I haven’t looked at this in any detail whatsoever and also admit I’ve jumped straight to the last post.
Does the insurance need to be covered on physical produce or am I just buying options in a different format?

Hi- it's like an option but backed by Lloyds of London. As long as you are a farmer and have a reasonable chance of producing what you are insuring then you can get a free quote. You can pay monthly, cancel at anytime and choose the price that suits your farm. The Premium and the payout is all based on the AHDB spot price. Hope that helps but can answer any questions on 0203 859 9390 if thats useful

 

[nickf]

I've just taken cover on 600t of winter barley and 700t of winter wheat, for 11 months cover.
WB, 600t, spread of £80.81 to £133.05, 11 months cover = £3.06/t
WW, 700t, spread of £85.73 to £144.03, 11 months cover = £3.15/t

I got quotes on Tuesday pm and they hold the quote for 3 days. A new quote today was considerably higher than the quote I had on Tuesday so it is interesting to see their algorithms adjusting the pricing.

I had an issue when it came to set up the direct debit, I just got an error screen but I called up and the problem was resolved within 20 minutes so very efficient.

I think the insurance cover I have got is good value at just over £3/t in these very uncertain markets and with the added advantage that as this is a pure insurance policy it can be cancelled at any time having only paid for the period covered up to cancellation if it looks like there is going to be a sustained market rally.

 

[Goweresque]

Am I right in thinking you can cancel the policy if its above the target price at any time, but if its underwater you can't, you have to let it ride to the end and you get paid on the price at that point (or is it the average of the price over the policy period)?

 

[nickf]

As far as I understand the policy can be cancelled at any time same as any other insurance policy can be. There is also a 14 day cooling off period where cancellation can occur with no charge/no cover being levied.
The price covered is the AHDB price at the end of the period, in my instance end of next Feb.

I am especially keen to get some cover this year due to my complete inability to predict what market prices are going to do!

I have only taken cover on half my tonnage to keep costs down and see how my first experience of this type of insurance works out.

I will still be using my normal risk management strategies, some pools, some sold forward and some spot next spring. This insurance for me is a bit of dipping my toes in a new market and seeing how I get on.

 

[Clive]

I have to say that the website is not very good - the opening page is an invite to dive straight in and get a quote. Why aren't there some pages that explain exactly whats what, how it works, what the legals are etc etc?

Or (and this is just me with my ultra cynical hat on, which I seem to be wearing more and more these days) a way of getting everyone interested to provide all their data which can then be used for marketing and sold on to others for £££?

no need to worry about people collecting data about you these days - it can't be shared legally with anyone without your consent

 

[richardcounsell]

I've just taken cover on 600t of winter barley and 700t of winter wheat, for 11 months cover.
WB, 600t, spread of £80.81 to £133.05, 11 months cover = £3.06/t
WW, 700t, spread of £85.73 to £144.03, 11 months cover = £3.15/t

I got quotes on Tuesday pm and they hold the quote for 3 days. A new quote today was considerably higher than the quote I had on Tuesday so it is interesting to see their algorithms adjusting the pricing.

I had an issue when it came to set up the direct debit, I just got an error screen but I called up and the problem was resolved within 20 minutes so very efficient.

I think the insurance cover I have got is good value at just over £3/t in these very uncertain markets and with the added advantage that as this is a pure insurance policy it can be cancelled at any time having only paid for the period covered up to cancellation if it looks like there is going to be a sustained market rally.

Hi @nickf thanks for placing an order to protect your farm. We're always here to help if you need anything on 0203 859 9390. best regards Richard