Press Release – 05/12/2018

Traditionally farm insurance premiums are calculated via macro-empirical claims data, painting all Agri or SME businesses with the same generalised “risk” brush.

But with the introduction of lead micro safety system data, Australian based start-up Zero Harm Farm’s subscribers are set to benefit from “proof of safety culture” data delivering a new method of calculating risk in regards to general insurance cover on the land.

The company claims farm managers who use Zero Harm Farm will experience not only a direct soft human return in farm safety but also real tangible cost savings in relation to general farm insurance premiums.

“This type of service offering is a world first in agriculture markets, commencing right here in Australia”. Says Mark Orr, Co-founder of Zero Harm Farm.

Proven in New Zealand

The model has already been proven in New Zealand where Zero Harm Farm began its market testing back in February 2016. The software platform was built to provide farmers and small SME’s with not only a comprehensive digital solution for health and safety compliance but also offered an automated process for delivering 10% rebates on WorkCover insurance directly to its customers at no additional cost.

Mr Orr commented, “back then the national workplace injury insurer in New Zealand, ACC, offered a 10% rebate for any business customer who could meet a ten-step audit process”.

The checklist reflected the Health and Safety at Work Act, the requirements WorkSafe and those of ACC itself. In order to receive the 10% rebate, the applicant was required to complete paperwork which stretched to 50 pages in length.

“This was a huge turn-off for any small business owner wanting to get a health and safety system in place, the reward was not really monetarily worth the effort in any managers or accountants eyes”. Said Mr Orr.

Automatic information collection

Zero Harm Farm designed its original software platform to automatically collate data directly from the safety app and instantly produced a PDF document on behalf of their subscriber to be forwarded to ACC so their rebate could be collected with no hassle.

The result was a 100% success rate in receiving on average $500 – $1,500 saving annually per customer in workplace injury cover for three years. The average ROI for subscribers was 389%.

However, three months after launching this tool ACC then suddenly changed the model of promoting safe practice via discounted WorkCover premiums and stopped the rebate on offer.

“ACC sited, amongst other reasons for canning the rebate, that the take-up of the discount had always been poor. We believe this was materially a result of the hugely onerous paper-driven application process, not necessarily because a monetized reward for better safety culture does not work.” Says Mr Orr.

Move into Liability Insurance

Fast forward two years and Zero Harm Farm have now pivoted this proven concept to the general farm pack insurance market in Australia.

The company says they already have two innovative early mover insurance providers working with them to test and translate “leading” health and safety data into lower premiums for farm-based customers.

“These early adopter insurers and brokers, like us, see a farm insurance future where deep-data around a business’s health and safety process can be readily utilised to offer a more individualised calculation on premiums and insurance products”. Said Mr Orr.

The company is confident in its ability to provide subscribers with access to better value insurance options. It offers to provide the annual subscription cost of its compliance app free to any Australian business or farm entity who does not materially benefit from a review via their insurance partners after they have signed on to the Zero Harm Farm system.

It is looking to offer the same service in New Zealand early 2019

Interested? Try the app for free here

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