Resiliency Risk management solutions will boost resiliency and protect the bottom line. For agribusiness, staying resilient against the complex challenges of climate change, market fluctuations and Case Study global disruption is not just a matter of short-term survival, but thriving in the long term. A HUB client, a food manufacturer, needed Climate change is the most obvious culprit. From January to streamline its insurance purchasing. To do through August, 19 weather disasters causing at least $1 so, HUB actively marketed the company’s billion in damages hit regions across the U.S. The disasters insurance coverages. The result: The manufac- 10 included convective storms, tornadoes and hail. And turer reduced the number of its underwriters Hurricanes Helene and Milton, which hit the Southeast in late September and early October 2024, each caused from 25 to 15 — and HUB was able to deliver 11 and will affect many damages that could cost $50 billion approximately $200,000 in savings. industries, including agribusiness. Not only does climate change harm agriculture, but also puts pressure on food and beverage companies to protect their employees, supply chain, buildings and equipment. Overall, the limited number of carriers for food and Wildfires directly affect forestry and wood production, beverage manufacturing means capacity will be reserved burning trees and threatening wood mills and other for best-in-class risks. Forestry and wood production rates facilities. have stabilized, though operations located in disaster- Insurance carriers are becoming more stringent on prone areas will have challenges in securing full coverage. agribusiness underwriting, demanding insureds produce With chaotic weather and new risks emerging, business continuity plans and mitigation strategies before agribusinesses’ resiliency will depend on understanding offering coverage. While rates for catastrophic loss are and dealing with issues before they happen. This has made unlikely to come down in disaster-prone areas, operations enterprise risk management (ERM) extremely important. that take risk management seriously are likely to secure better coverage. Whether it’s a meat packing plant, logging operation Umbrella and excess liability policies in agribusiness will be or bottling factory, agribusinesses need to manage and up as much as 10% in 2025, and commercial automobile assess potential risk to stay resilient — working with a coverage is expected to increase as much as 15%. broker with wide industry expertise and strong carrier relationships will help develop comprehensive ERM There are positive signs. Companies diligent with risk programs and make enterprises far more insurable, safe management will have only slight rate increases or and resilient. declines for commercial property coverage. General liability coverage rates have moderated and should rise only 5% to 10% for 2025 renewals. Rates will rise slightly 10. PropertyCasualty 360, “U.S. logs 19 billion-dollar climate disasters so far in 2024,” September 10, 2024. or decline for stock throughput coverage, as more 11. AP, “Helene and Milton are both likely to be $50 billion disasters, underwriters have entered the market. joining ranks of most costly storms,” October 16, 2024. 5