December 2023 - February 2024
Doing what’s right
CONTENTS
FMG POST DECEMBER 2023 - FEBRUARY 2024
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NOTE FROM ADAM HEATH
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DOING WHAT’S RIGHT FMG - NZ’S FIRST CERTIFIED B CORP GENERAL INSURER
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MAKING FARMSTRONG A VERB
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BEING THERE WHEN IT MATTERS SUPPORTING CLIENTS HIT BY CYCLONE GABRIELLE AND THE AUCKLAND ANNIVERSARY WEEKEND FLOODS
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PARTNERS IN PROGRESS DRUMMOND & ETHERIDGE
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PREPARING FOR EL NIÑO
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TIPS TO MANAGE YOUR INSURANCE PAYMENT
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FMG CONNECT WHAT’S NEW
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INTRODUCING THE NEW BOARD CHAIR ONE ON ONE WITH SARAH VON DADELSZEN
Cover: King Country River Care is an incorporated society formed in 2018 with the aim to help farmers understand their environmental impact and get ahead of anticipated regulatory change by pooling their resources. The River Care group organises workshops and field days on farms to educate and motivate local farmers. They also support fencing and planting of native trees and scrubs for erosion and sediment control, along the local streams, rivers and hillsides.
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FMG POST DECEMBER 2023 - FEBRUARY 2024
Note from Adam Heath Kia ora koutou katoa At FMG we’re guided by our values. Do what’s right, Proud of who we are, We’re in it together, and Make it happen. Values that our employees live by every day. It was very humbling to see those values play a significant role in FMG recently being announced as ANZIIF’s (Australian and New Zealand Institute of Insurance and Finance) General Insurance Company of the Year at its recent award ceremony. Fitting recognition for the effort and contribution all of our employees across the Mutual have made in living our values during what has been a challenging year for many of our Members and clients.
Our Value of ‘Doing what’s right’ was also the motivation behind our ambitious goal set in 2021 to become a B Corp certified business and I’m extremely proud and excited to announce that we’ve now achieved accreditation. FMG is officially the first B Corp General Insurer in Aotearoa/New Zealand, meaning we’ve been recognised for having some of the highest standards of verified, social and environmental performance, transparency, and accountability in the world.
We sought to become a B Corp, utilising a standard that’s not our own, to help provide independent assurance that we’re continuing to do what’s right by you as our Members and clients in delivering to our Purpose of a better deal for rural Aotearoa/New Zealand and our Vision of helping to build strong and prosperous rural communities. Achieving those outcomes starts with us. It means attracting and retaining the best people so we can continue to provide fit-for-purpose advice and insurance solutions, backed by great service. Partnering with like-minded suppliers is also key, so we can all ‘do our bit’ for our people, local communities and the planet. As a mutual insurer with a legacy and history stretching back 118 years, FMG has always been committed to the wellbeing and prosperity of rural communities, so achieving B Corp certification is a natural extension of this. Regardless of what the future may bring, we remain committed to being a Purpose-led and Values-based insurer focused on doing well by doing good for our Members, clients and all of our stakeholders. I appreciate that many of you may not know that much about B Corp, so you can read more about it in this edition of FMG Post. I’m also very proud of the fact that FMG is now well in excess of 80% of claims settled for Cyclone Gabrielle and the Auckland Anniversary Weekend floods. This is a remarkable achievement and is testament to the collective team effort
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across all areas of the Mutual in support of our clients devastated by these tragic events. We have learnt a great deal from this experience and we will be taking those learnings forward to ensure we continue to improve our response to future events. I appreciate it’s been a tough year for the country and in particular the agricultural sector. These are challenging times with weather events, rising costs and interest rate increases having created a difficult business environment for many. The developing El Niño weather pattern is also creating a level of nervousness about what may lie ahead for the summer. As an advice-led insurer, you can rest assured that we are doing everything we can to help our rural communities be prepared for the risks and opportunities these circumstances may present. This is also the first edition of FMG Post featuring Sarah von Dadelszen as our new Board Chair and with that I’d like to take this opportunity to congratulate Sarah on her appointment. The Executive Leadership Team and I look forward to continuing to work with Sarah in her new capacity and the Board more broadly as we continue to evolve, grow and build a bigger and better Mutual together. Thank you for your continuing support. Kind regards / Ngā mihi,
ADAM HEATH, CHIEF EXECUTIVE FMG
FMG POST DECEMBER 2023 - FEBRUARY 2024
Doing what’s right FMG becomes the first B Corp certified General Insurer in Aotearoa/ New Zealand
FMG is now a certified B Corp. We’re joining the ranks of global heavy hitters such as Patagonia, Ben and Jerry’s and All Birds, alongside Kiwi based businesses, Synlait, Co-operative Bank and Kathmandu – all working towards the shared goal of delivering benefits for people and the planet while remaining profitable.
achieve, and because it uses a holistic approach that seeks balance across governance, employees, community,
So, what is B Corp?
Many businesses consider themselves values-driven and sustainable, but sustainability is a hard thing to measure. Most agree on doing what’s right but can’t agree on ‘what right is’. For us, B Corp provides a measurable framework and benchmark so we can get to work.
The ‘B’ stands for ‘Benefit’ and is built on the premise of using business as a force for good. As certifications go, B Corp is considered the global gold standard for measuring sustainability. This is due to how difficult it is to
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environment, and client impact.
As a mutual, FMG is already a sustainable and values-driven business, why do you need to certify?
FMG POST DECEMBER 2023 - FEBRUARY 2024
B Corp further cements FMG’s accountability, transparency, and commitment to returning benefits to Members and supporting strong and prosperous rural communities.
How will B Corp strengthen FMG and ensure you’re here for another 118 years? The B Corp framework measures sustainability as an ongoing journey rather than an end goal. It’s about continuously identifying areas for improvement, recognising both our strengths and the opportunities for growth. FMG recognises our duty of championing rural sustainability as a trusted member of the community. Our Members and clients
want us to lead from the front and so that’s what we’re doing. Being part of the B Corp community also offers opportunities to connect with global leaders and experts in sustainable business practice. This network allows us to share insights and strategies while encouraging collaboration and knowledge sharing to strengthen our efforts. Becoming a B Corp ensures we’re adhering to the highest standards while delivering the insurance and advice you expect and being there when the unexpected happens. It locks in our commitment to our values and our rural communities and a more sustainable future. For more information click here.
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Support our goal to reduce our environmental footprint by a minimum of 30% by 2030 by changing your preference to digital communications only from here on in. Email marketing@fmg.co.nz and help us achieve this goal.
FMG POST DECEMBER 2023 - FEBRUARY 2024
Making Farmstrong a verb Last year, 14,000 farmers and growers reported an increase in their wellbeing thanks to Farmstrong. This shows the benefits of focusing on daily habits when the going gets tough, says Farmstrong Ambassador Sam Whitelock.
I’ve been Farmstrong’s Ambassador since 2016 and what I like best about the programme is that it’s so practical. I think of Farmstrong as a verb, it’s something people can actually do to increase their wellbeing. Our main message is one of empowerment—that as individuals and workplaces there is always something within our control that we can do to make today and tomorrow better, no matter how difficult the circumstances might be. I’ve seen first-hand how well Farmstrong’s solutions work for rural people when they choose to adopt them. However, maintaining wellbeing doesn’t happen by accident. We need to make space for it in our busy lives. The good news is that the research shows people who thrive in spite of life’s challenges share a few simple, daily habits—the 5 Ways to Wellbeing. This means they: stay connected with mates, enjoy the simple pleasures in life, stay active and move the body, learn new things and give back to their friends, neighbours and community. My experience is that over time the benefits of these habits really add up.
That’s hardly surprising when you look at what the science tells us: •
people with strong social connections are happier, healthier and live longer.
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keeping active / working up a sweat releases endorphins that boost your mood.
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learning new skills is good for your brain and keeps your thinking flexible and open.
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taking time to notice and appreciate the simple things in life every day, helps us ‘declutter’ the mind and appreciate the ‘good stuff’.
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when you give your time to others, not only do they benefit, but it makes you feel a lot happier too.
I’ve made the 5 Ways to Wellbeing part of my life because they provide balance, support and a sense of perspective when the going gets tough. Making these small, regular wellbeing ‘deposits’ means you’ll have something to draw on when you’re feeling under the pump. You could tick them all off by organising one enjoyable activity a week, like coaching kids sport or catching up with your neighbours or getting off farm to go hunting or fishing or attend a community event.
In Farmlands stores up until Christmas this year you can choose to donate to the ‘Tag your Charity’ fundraiser. Get in behind Farmstrong and help support our community. You can even share your Christmas kindness via your own 'ear tag' that you can hang on
Farmstrong is a nationwide, rural wellbeing programme. Find out what works for you.
the Farmlands Christmas charity tree.
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FMG POST DECEMBER 2023 - FEBRUARY 2024
Farmstrong was set up in 2015 to be the ‘ambulance at the top of the cliff’. Since then, more than 36,000 farmers and growers have engaged with the programme. With your help I know we can reach many more farmers in the years ahead. This year many farmers have generously given their time to attend events and support the programme at a community level. We plan to build and connect this network so that our tools and resources can reach an even wider audience. Let’s encourage as many farmers and growers as possible to adopt the habits that we know help keep people well, rather than waiting until their wellbeing reaches a crisis point. Anyone looking for inspiration about what’s possible should head to the Farmstrong website where there are a ton of free farmer-to-farmer tools and resources for managing the challenges of farming and growing. Topics include nutrition, sleep, body conditioning to keep farm fit as well as mental skills and mindsets for managing stress, pressure and workload. There’s even a 150 page book ‘Live Well, Farm Well’ that tells the stories of 29 farmers and growers who navigated challenging times and share what they did to get through. It’s a great toolkit for anyone going through a tough time. The Farmstrong podcast interviews hosted by Rowena Duncum on The Country are also a great listen so check those out too. The recurring theme of all these stories is that to get the best out of your farm or orchard, first, you need to get the best out of yourself.
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FMG POST DECEMBER 2023 - FEBRUARY 2024
Being there when it matters Jacqui McIntosh Recovery Manager
Cyclone Gabrielle and the Auckland Anniversary Weekend floods resulted in the biggest job FMG has faced in our 118 years. With more claims received than from the Kaikōura and Canterbury earthquakes combined, FMG’s recovery manager Jacqui McIntosh explains that learning from the past and our rural expertise has helped get money back into impacted communities faster than ever before. The surge in claims that followed Cyclone Gabrielle and the Auckland Anniversary Weekend floods required an urgent, agile response – and our FMG team stood up to the task ahead. With a high number of impacted Members and clients, we knew we needed to move quickly, and move
people around the business to increase the number of our people on the phones. The claims rolled in exponentially and we quickly saw the impacts these events had had on our clients, their homes, businesses, and livelihoods. These are the type of claims that are all consuming for all involved. By the end of February, we had more than 7,000 claims relating to these events—a number that continues to rise today—as the full extent of the damage and devastation to our clients is realised. At writing this, we have received more than 11,450 claims from the two weather events. When the calls to lodge claims started, they did not stop, with our biggest day resulting in a 250% increase in calls compared to a ‘normal’ day. It has been a determined effort to pay more than $220 million to impacted communities – and get money back into the hands of our clients. I’m very proud of the collective team effort to get to this point of 80% of claims settled.
Even so, it has taken time. We have reinsurance relationships to honour. These allow us to ensure we have money on hand when our clients need it most – but they also need to know we are spending it wisely and correctly. There are only so many assessors to help us understand the costs of damage and what our clients are going to need to repair or replace their property. Demand for this capability from damaged locations across the North Island outstripped capacity. I have watched our people going the extra mile, time and time again. Many have been here before. They were there for the Canterbury Earthquakes and again in Kaikōura, and they will be there for the next claim – be it big or small. We know there is still a road ahead for many; we still have claims to settle, and we still have challenging processes to work through to fully understand the damage sustained, the value of property and if it can be repaired or replaced, and we still have clients facing uncertainty around the future of their homes and businesses. It is important that time is taken to make sure we all understand the future risks to people and property. What I can provide assurance on, is that we are here for the long haul. FMG is part of the very fabric of rural New Zealand. We have been here for 118 years, and we will be here for 118 more.
Isabelle Crawshaw and daughter Millie with Jacqui; Jacqui and Isabelle check out Cyclone damage to the Crawshaw farm in Patoka, Hawke’s Bay.
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FMG POST DECEMBER 2023 - FEBRUARY 2024
Partners in progress Drummond & Etheridge FMG’s first pre-approved agricultural repairer Earlier this year, we formally partnered with South Island based Drummond & Etheridge as our first agricultural repairer within our pre-approved repairer network. Representing John Deere (our most insured tractor brand) this new partnership means a more streamlined experience for our clients. New Zealand owned and operated; Drummond & Etheridge has been around for over 85 years, with a network of ten stores plus an inhouse dismantling yard for excellent quality second hand parts. “As an FMG Pre-Approved Ag Repairer, we’re able to eliminate traditional pain points from the insurance repair process, by focusing on delivering the best results in the shortest time, ensuring customers are not without their machinery for any longer than necessary. Together with FMG, we’re not just fixing machinery; we’re actively supporting farmers to overcome challenges with
speed and confidence. This partnership embodies the essence of collaboration, built on shared values, and a mutual commitment to supporting the agricultural community.” Steve Hadler, Drummond & Etheridge Group Aftermarket Manager. “This partnership means a lot to FMG, and it is built on trust and values. As the leading rural insurer, we know just how disruptive it can be to have a tractor or major piece of farm equipment out of action. We’re focused on making the process of claims and repairs as quick and efficient as possible.” Robert Milne, FMG Claims Relationship Manager Motor.
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L to R: Rob Milne - FMG Claims Relationship Manager Motor, Daniel Pay - D & E Service Manager Blenheim, Kim Grooby - FMG Chief Claims Officer.
FMG’s Pre-Approved Repairers We’ve partnered with a network of pre-approved vehicle repairers across the country who have a dedicated FMG relationship manager and can go ahead with certain repairs as soon as a claim is lodged. This reduces wait times and ensures repairers have the backing to do a quality job. It also supports local, family-run businesses across provincial New Zealand.
FMG POST DECEMBER 2023 - FEBRUARY 2024
Preparing for El Niño Angela Taylor Advice Services Manager
El Niño is here this summer so now is the time to prepare for the increased risks created by the dry, hot and windy conditions that could be on the way.
According to NIWA there is now 100% confidence of an El Niño over summer, and over 80% certainty that this event will extend until autumn 2024. Oceanic temperatures are within the top-five strongest El Niño’s in the last 80 years. As an advice led insurer, we feel we need to do everything we can to help prepare for the potential impacts of this weather pattern. El Niño means an increased risk of drought, fire risk and gusty westerly winds. Dry, hot and windy conditions mean an increased risk of wildfires so farmers and growers need to do what they can to prepare for a worstcase scenario. Now is the time to prepare by doing things like clearing vegetation, creating and maintaining a ‘defensible space’ around your home and buildings, setting up water supplies, cleaning gutters and forming a plan. Head to fireandemeregency.nz for information on its National Wildfire Readiness and Prevention campaign. There is a lot you can do to lessen the impact by preparing now and it will also increase your chances of navigating a major event safely.
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It’s important to have an escape plan and practice it regularly with your family and your staff. Make sure your RAPID number is displayed at the end of your drive, where it is easy to see from the road and that your access ways are clear. You should also make sure you have enough water supplies available with clear signage. Burn-offs are a legitimate land management tool but it’s important to plan them in advance and consider the weather conditions, fuel conditions and any regulatory requirements you need to meet ahead of time. Head to checkitsalright.nz to request a fire permit. Even if you are cautious, it doesn’t completely remove the risk of fire. With an increased risk of high winds forecast it’s important to keep trees and branches near buildings trimmed to avoid damage. Trees and branches falling, wind lifting iron and tiles off roofs, and loose items blown into sides of houses are a common cause of these claims. A good rule is keeping branches trimmed and at least 3 metres clear of any buildings and overhead powerlines. We recommend securing any outdoor items that could become missiles in intense winds. If you notice any loose tiles or iron, repair these as soon as possible.
FMG POST DECEMBER 2023 - FEBRUARY 2024
El Niño pressure pattern and wind SOURCE: NIWA
It’s also important to have a plan in place for windstorms if you operate an irrigator. Every year, wind remains the top cause of irrigator-related losses, accounting for 34% of FMG’s total annual irrigator claims. The risk of irrigators blowing over is even greater in an El Niño weather pattern. Having a plan in place will ease the pressure when windstorms are forecast, and help you react to these sudden events. Your plan should cover wind prediction, who’s responsible, what needs to be done, and include regular practice runs.
to the wind. Head to fmg.co.nz/irrigators for more on Point, Park, and Anchor. FMG is sponsoring a podcast produced by Farmers Weekly called El Niño Watch with weekly updates on the developing weather pattern which you can find on Spotify and Apple Podcasts. Other useful tools are NIWA’s drought forecasting dashboard and the Ministry for Primary Industries Preparing for El Niño page.
IrrigationNZ and FMG agree that pointing either into, or away from, the wind remains the best way to reduce damage, as this reduces the surface area exposed
% OF IRRIGATOR CLAIMS are due to
WIND The risk of irrigators blowing over is even greater in an El Niño weather pattern. Having a plan in place will ease the pressure.
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FMG POST DECEMBER 2023 - FEBRUARY 2024
Tips to manage your insurance payment We appreciate things are tough at the moment. Many of our clients have benefited from changing the way they pay their insurance premiums. Small changes often make a big difference. Consider these tips when managing your insurance payments: Lowest overall premium We recommend the one-off annual premium as it always ensures the lowest overall premium as it removes administration costs – passing on these savings to you means you receive the lowest overall premium.
Paying via agency account
What makes up my premium? FMG premium covers what you contribute to cover any claims, reinsurance and the costs of running FMG. You can find out more here.
FMG Connect What’s new
To receive one bill and defer payment to the 20th of the following month, Farmlands or Ruralco may be the option for you. You can select annual payments, or you can look at a quote for six monthly, quarterly or monthly options.
Paying by credit card At FMG, we don’t charge credit card processing fees and you can earn bank loyalty programme rewards and take advantage of interest free payments by using your credit card.
You can now add comprehensive insurance cover for your ATV, UTV, tractor and motorbike on FMG Connect. Via FMG Connect it’s now also easier to edit basic elements of an existing vehicle. Personal use or landlord’s household contents can also be insured online, including specifying any high value items.
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Spread your insurance premiums across the year We appreciate you may want to match your insurance payments to your cashflow. Ahead of your next renewal, you can see the cost of spreading the insurance payments across the year with either a one-off annual payment or look at the six monthly, quarterly, or monthly direct debit options in FMG Connect.
Register with FMG Connect With FMG Connect you can: • view insurance statements online, • make a claim, • manage accounts and policies, • download insurance certificates, • pay full insurance online by credit card. For help, give us a call on 0800 366 466 or email contact@fmg.co.nz
What’s next? Editing parts of existing contents cover will be extended, as well as listing an interested party on a certificate of cover. Register HERE.
FMG POST DECEMBER 2023 - FEBRUARY 2024
Introducing the new Board Chair We recently had a fitting AGM, farewelling outgoing Board Chair, Tony Cleland, from FMG in his hometown of Cromwell. It was also a chance for the Board and Senior Management to show our appreciation to Tony for his unwavering dedication and support of the Mutual. Succession for an incoming Chair is not always seamless, but for me it has been as this is a step the Board decided on nine months prior; and as a result, I have been provided with a great runway into the role. I feel very privileged to be leading FMG, we have a strong Board in place with good experience and future leadership in the mix, with different backgrounds enabling a variety of views to be brought to the table. The Executive Leadership
Team has evolved under the stewardship of our CEO Adam Heath. We have an impressive team in place, with good depth throughout the organisation, highlighted by both internal promotions and external recruitment. The Board is committed to keeping FMG relevant for our Members. We are focused on our core Purpose to create ‘a better deal for rural New Zealand’ and we are embedding new ways of working to ensure that happens, along with responding to increasing regulatory requirements. It is the reason the Mutual was formed and is one of the key reasons why I wanted to be involved, to ensure we continue to do what is right for all Members and clients. To enable this takes a strong team and our culture is one to be very proud of. Our people go
to work every day wanting to do the right thing. It is a great organisation, and one which I intend to ensure remains that way as it grows and strengthens. FMG remains in great shape, in part thanks to the strong relationships our team have with our reinsurers which were highlighted with the recent adverse weather events. We are unique in terms of both our strong support of and presence within provincial and rural New Zealand. This is a key strength of FMG. It is a hard one not to like along with our obvious geographical spread. I look forward to exciting times ahead and to working with our wonderful FMG team. Ngā mihi, Sarah von Dadelszen FMG Board Chair
We are focused on our core Purpose to create ‘a better deal for rural New Zealand’ and we are embedding new ways of working to ensure that happens.
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