Abolishing insurance duty on agricultural insurance products
Agricultural insurance is a risk management tool that can potentially be used by primary producers to reduce the negative impacts of crop or livestock loss due to disease and/or a number of naturally occurring weather-related perils.
The Queensland Government worked with industry to investigate the feasibility of abolishing insurance duty on agricultural insurance products, and reducing the reliance of primary producers on government assistance for managing climate risks such as drought and natural disasters. Consultants KPMG were engaged to prepare a report on the feasibility of abolishing insurance duty on agricultural insurance products.
For the purposes of this study agricultural insurance was defined to encompass products offered by traditional insurers that are aimed at managing production risk such as multi-peril crop insurance (MPCI), fire, hail, flood, livestock insurance and other risk management products such as parametric insurance, weather index and yield index products.