European insurers are watching the steady spread of foot and mouth disease with concern. Premiums for agricultural insurance are rising rapidly and reinsurers are understood to be withdrawing capacity. This comes, of course, at a time when farmers are clamouring for insurance as the risk of their own livestock contracting foot and mouth disease rises.

The other agricultural disease causing great concern in Europe – bovine spongiform encephalopathy – otherwise known as mad cow disease – is not covered under most European agricultural insurance policies. But analysts believe farmers will still attempt to make claims for BSE impacts.