UK Insurance Companies Refuse to Insure Frankencrops

FARM press release
7/10/03 ­ for immediate release
No-one will insure GM crops

"The worry is that GM could be like Thalidomide ­ only after some time
would the full extent of the problems be seen"
- Insurance company spokesperson

A survey of the principle insurance underwriters in the UK, carried out
by the new campaigning group FARM, found that neither farmers
considering growing GM crops or non-GM farmers seeking to protect their
businesses from contamination by GM crops would be able to find anyone
willing to give them insurance. [1]

The survey conducted by FARM staff and working farmer members revealed a
level of opposition from companies taking on the risks of insuring GM
crops, comparable to the public¹s hostility to purchasing and eating
them.

Insurance company spokespeople compared GM crops to OThalidomide¹,
OAsbestos¹ and OActs of Terrorism¹. [2]

All the companies surveyed felt that too little was known about the long
term effects of growing these crops on human health and the environment
to be able to offer any form of cover:
"50 years ago insurers were writing policies for asbestos without a care
in the world ­ now they are facing claims of hundreds of millions of
pounds. The insurance industry has learned to be wary of new things, and
there is a real feeling that GM could come back and bite you in 5 years
time", said one company spokesperson.

National Coordinator, Robin Maynard said,
OWhen insurers quantify GM crops in the same category as thalidomide,
asbestos and terrorism, no thinking farmer should risk their business
and public reputation by taking on this unproven, unwanted and
unnecessary technology.

Time and time again, farmers have borne the brunt of someone else¹s
mistakes or short-cuts ­ BSE, organophosphates, salmonella etc. It¹s
time farmers got out of the firing line and let those seeking to force
GM crops into our fields and onto supermarket shelves take the flak.

If Government and their friends in the Biotech. companies dispute the
judgement of the professional insurers, perhaps they will offer
unlimited cover to the few farmers willing to risk growing GM crops? In
addition, for both farmers and consumers, they need to guarantee, what
the insurers clearly believe isn¹t possible, that GM-crops can be grown
without contaminating the crops of the majority of farmers who want to
remain GM-free.¹

The survey is released in conjunction with a FARM briefing, OGM Crops ­
sorting the Wheat from the Chaff¹, which sets out the facts about GM
crops as they will affect practical, working farmers and the markets
they produce for - if the Government gives the go-ahead for commercial
planting in the UK.[3]

For further information contact:
Freddie Whitefield 0207 349 5833
Robin Maynard 0207 349 5832/07932 040452
A number of the working farmer members of FARM have direct experience of
the issues surrounding GM and agriculture and are available for interview.

NOTES TO EDITORS:

1. FARM staff and farmer members contacted the five main underwriters
and brokers for farm insurance in the UK, asking what their current
standpoint on GM was and whether there was any provision for changing
this, if commercialisation was approved. Individual brokers were unable
to offer any clarification to our farmers as to their options and
liabilities and referred us on to the main companies.

Summary of results and some notes on the comments made by the
spokespersons for each company:

AIUA (Agricultural Insurance Underwriters Agency) (Norwich Union/Sun
Alliance)
Have an exclusion clause for liability arising from GM crops. Do not
anticipate any change in position.

Spokesperson said that the reason for this was that they had no idea
what the long term effects might be. There is such a degree of
uncertainty surrounding the potential risks, and the effects could take
generations to manifest.

Rural Insurance Group (Lloyds)
Also have a set exclusion clause ­ putting GM crops in the same bracket
as Oacts of terrorism¹.

The reason they have this is because they have no track record which
they are willing to base assessments of risk on. They feel there is too
much fear surrounding the topic. Whenever it comes on TV, it raises
fears of mass problems associated with contamination. The insurance
companies have learned to be cautious about new things.

BIB Underwriters Limited (AXA)
Have set exclusion clause which was amended within the last year, and
will continue to apply if commercialisation is approved.
Basically they would turn down any policy that has any association with
GM. So that would include farm buildings and property insurance as well
as public liability. The reason for this is that alongside the problems
of cross contamination, they envisage problems associated with arson or
vandalism due to anti-GM protestors.

NFU Mutual
Have had a policy for some time now that they will not provide insurance
for farmers choosing to grow GM crops. Unless there is a serious
increase in the quality of available information there will be no change
in their standpoint.
They believe that the risks are not fully understood. They cannot see
this position changing in the near future despite the proximity of
possible contamination. Their recommendation to farmers considering
growing these crops is to approach the industry/seed companies and
obtain some liability insurance through them.

Business combined Policy Endorsements Part A 030A Genetically Modified crops
"NFU Mutual will not indemnify the insured in respect of any liability
arising from the production, supply of or presence on the premises of
any genetically modified crop, where liability may be attributed
directly or indirectly to the genetic characteristics of the crop. In
particular, no indemnity will be provided in respect of liability
arising from the spread or the threat of spread of genetically modified
organism characteristics into the environment or any change to the
environment arising from research into, testing of or production of
genetically modified organisms"

Farm Web
Are currently reviewing their position on this in light of the postions
taken by Re-insurance companies and developments in the EU. At the
moment they do not have a set statement but say they would have to
consider each case on its own context.

Quotes from insurance spokespeople collected by researcher during survey:

"The worry is that GM could be like Thalidomide ­ only after some time
would the full extent of the problems be seen"

"50 years ago they were writing policies for asbestos without a care in
the world. Now they are faced with bills of hundreds of millions. There
is a feeling that GM could come back and bite you in five years time."

"If a farmer approached us with any kind of insurance policy relating to
a farm associated with GM we would have to refuse their application ­
whatever the kind of insurance applied for."

2. A number of the working farmer Board members of FARM have direct
experience of the issues surrounding GM and agriculture.

* Lincolnshire dairy farmer, John Turner was unable to grow a lucrative
crop of maize silks due to the threat of contamination from a
neighboring GM trial site. In the absence of any form of insurance
against the risk of contamination, the only option for the farmer was
not to grow any plants that could be vulnerable to cross-pollination.
The financial impact of these precautionary measures has been calculated
to be of the order of £2,500.

* John Sanderson, an arable and beef farmer from Suffolk, hit the
headlines three years ago when he was the first farmer in the country to
plough in the GM contaminated oilseed rape which he had inadvertently
planted on 27 acres after the government failed to notify farmers in
time about the contamination. The GM-contaminated seed had been sown on
over 30,000 acres in the UK, and following public and media pressure,
was all eventually destroyed.

* Lincolnshire arable farmer, Peter Lundgren fought a trial site
proposed next to his farm. He has also visited the US to see the effects
of GM crops first hand, and helped produce a detailed critique exposing
exaggerated claims of cost savings by Brooms Barn Research Station on
the economics of growing GM Sugar Beet.

All three farmers are available for interview. Photos are also available.

3. To obtain a copy of FARM¹s GM briefing please contact Freddie
Whitefield on 0207 349 5833 or at info@farm.org.uk

The survey and briefing come out at a critical time for the Government¹s
decision on whether or not to give the go-ahead for commercial planting
of GM crops in the UK. The results of the Government¹s Field Scale
Evaluations of GM crops are due to be published next week. Leaked
accounts suggest that the evaluations found that 2 of the 3 GM crops
first proposed for commercialization show negative impacts on the
environment. This study follows on from overwhelming public hostility to
GM crops confirmed by the GM Nation debate and the lack of any
short-term economic benefits identified by the No 10 Strategy Unit report.