Insurance House has launched an underwriting agency to provide crop cover for cereal growers.

ProCrop Insurance – underwritten by CGU – covers against financial loss when rainfall drops below 50% of the mean average during the initial growth period.

Director Bob Smith says the product is currently available in Victoria and SA only.

“We didn’t have time to launch the cover in the other states for this growing season, but our intention is to provide the product nationally,” he told insuranceNEWS.com.au.

“Our priority at present is to go and talk and educate insurance intermediaries about the product.”

Mr Smith says ProCrop differs from other crop offerings by reducing the weather risk to the insurer – striking a balance between cover and price and making the cover more sustainable.

“A lot of grain growers in the Victorian Farmers Federation helped with the development of the idea,” he said.

Meanwhile, Allianz-backed Latevo International has relaunched its crop insurance product in WA. The company did not respond to a request for details of the offering before insuranceNEWS.com.au’s deadline.