Thalidomide Warning by Insurers
Who Refuse GM Crops Cover
by Robert Uhlig

The major agricultural insurance companies are refusing to insure farmers who intend to grow genetically modified crops, according to a survey that deals a further blow to Government hopes of approving at least one crop for commercial cultivation next year.

The survey, conducted by working farmers of FARM, a campaign group, found insurance companies unwilling to take on the risk of liability claims against farmers who grew GM crops.

Leading rural insurance underwriters told the farmers that they were concerned that "GM could be like thalidomide - only after some time would the full extent of the problems be seen". Some spoke of the potential of lawsuits akin to the big payouts for asbestos - exposure victims. "Fifty years ago, insurers were writing policies for asbestos without a care in the world. Now, they are facing claims of millions of pounds," one underwriter told the farmers.

"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 five years' time."

Rural insurers are so concerned at the scope for liability claims if the Government approves GM crops that they are even refusing to insure non-GM farmers due to contamination by GM pollen.

The problem of how to grow GM crops and conventional varieties has proved to be such a difficult issue to resolve that the Prime Minister's advisers have repeatedly failed to reach a consensus. The Agriculture and Environment Biotechnology Commission, which advises the Government, is expected to deliver a much delayed report on co-existence by the end of the month.

All the insurers surveyed felt that too little was known about the long-term effects on human health and the environment to be able to offer any form of cover for farmers growing GM crops. Even the NFU Mutual, the insurance arm of the National Farmers' Union, which is in favour of GM crops, will not provide insurance for farmers wanting to grow GM crops. A spokesman said the company believed the risks were not fully understood and advised farmers to seek cover through the biotechnology companies that own the patent to GM seeds.

Agricultural Insurance Underwriters Agency, which underwrites policies for Norwich Union and Sun Alliance, said it had an exclusion clause for liability arising from GM crops. Rural Insurance Group, which underwrites Lloyds' policies, puts GM crops in the same bracket as terrorism and excludes them from cover.

BIB Underwriters Limited, which underwrites AXA policies, said it would turn down any policy that has any association with GM, including cover for farm building and property insurance as well as public liability. A spokesman said that aside from the problems from cross contamination, BIB anticipated a risk of claims associated with arson or vandalism due to anti- GM protesters.

Robin Maynard, the national co-ordinator of FARM, said:"When 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."
The Daily Telegraph, 8th October, 2003