Fire Insurance Unaffordable for Most Australian Plantation Timber Growers

Still recovering from the Black Summer bushfires, the Australian timber industry continues to face a multitude of issues and insurance, or the lack thereof, is just one of many.

After the east coast bushfires of a couple of years ago, plantation fire insurance rates tripled or quadrupled. On top of that, there was a mass exodus of insurers from the industry. In turn, this left many Australian timber plantations at the start of a new fire season without fire insurance, which experts warn is putting Australia’s timber supply at serious risk after a decade-long stagnation in new plantations.

David Geddes is a consultant for foresters throughout Australia and a former president of Australian Forest Growers, the industry body for Australian plantation foresters. Geddes said the number of insurance providers had fallen dramatically.

“Prior to this summer there were half a dozen [insurance] providers but, as far as I’m aware, there’s only one insurer this year and their books filled up quite quickly,” Geddes said.

Geddes said claims that the Black Summer bushfires in 2019-2020 were among the largest insurers had ever seen, coinciding with blazes in North America and Europe.

A new insurance scheme was in the works to help small plantation growers next year, Geddes added. “This summer has been particularly difficult, but we expect there will be a scheme available for next summer. I think [the lack of insurers] is a short-term issue.”