Dutch insurer Achmea expects a long future in Australia as it looks to cater for the “under-serviced” rural market.

Australian Prudential Regulation Authority figures released last week show Achmea – which began operations here at the end of 2013 – last year earned gross premium of $1.44 million, incurred gross claims of $926,000 and recorded an overall loss of $5.54 million.

But Australian CEO Timo van Voorden told insuranceNEWS.com.au all is going to plan, with more than $1 billion of farm assets and $1 billion in farm liability covered.

“Predictions are all well and good, but once you confront reality some things are going to go worse than expected and other things better,” he said. “It was expected that we would generate some start-up losses, but overall we are very happy with the way things are going.”

Achmea distributes through its bancassurance partner and major shareholder Rabobank, but is looking to expand.

“We wanted to remain under the radar for a while,” Mr van Voorden said. “We’ve had a year of calibrating our product and prices and gauging response.

“But we are about to become more visible. This is not a hit and run, flash in the pan sort of thing. We envisage a steady, consistent growth model over centuries.”

Value and service will be prioritised, he says.

“It has felt in some areas like an under-serviced market. Achmea has been dealing in risks on farms for more than 200 years, and when we come onto a farm we start by talking about risks, not policies.

"By reducing risk and taking higher excesses on certain things, we can reduce the premium.”

Achmea does not work with brokers, and while this may result in lost business, Mr van Voorden says it is not about to change.

“Brokers incentivise through commissions. Our mission is to keep premiums low, and that might not be in brokers’ interests. That’s the choice we make and it is a very deliberate choice.”

Achmea was founded in the Netherlands in 1811 when 39 farmers put money into a glass jar, and it remains a mutual business.