The emergence of a self-funded proportional income protection product built by Australian farmers for Australian farmers.
Security for the future
Latevo Farmers Mutual is the evolution of Latevo Pty Ltd, Australia’s first MPCI provider to a self-funded proportional discretionary mutual that offers crop income protection to our members.
Latevo are proud to partner with Australian farmers and introduce Latevo Farmers Mutual. A 100% not for profit company that uses the pool of protection fees to support farmers in peril. Giving our members security for their farm into the future.
Cost Effective Catastrophic Risk Management
Latevo Farmers Mutual is exempt of stamp duty, income tax and insurance company fees. This means that the mutual can capitalize itself more efficiently than any other business model to future proof Australian farmers.
Members of the Latevo Farmers Mutual have access to Latevo Farm Income Protection products and benefits where traditional insurers will not provide cover.
The mutual retains 100% of the risk and the Latevo Farmers Mutual board has complete discretion over claim payments.
Nobody understands Australian farming like the people who work at it day in day out. At Latevo Farmers Mutual we get it, because it’s what we do too.
Not for profit
Latevo Farmers Mutual is a 100% not for profit company that was formed to operate as a self-funded proportional discretionary mutual fund to provide financial protection for the benefit of Australian farmers.
All earnings are retained in Australia in the
self-funded proportional discretionary mutual. Latevo Farmers Mutual is a public company that operates with complete transparency. With annual published financials meaning that our members can see how Latevo Farmers Mutual works for them.
How it works
Latevo Farmers Mutual is owned by its Members and only members are entitled to access the benefits of Latevo Farm Income Protection when they pay a protection fee.
The members use their combined resources to fund Latevo Farm Income Protection and its running costs. The protection fees collected by the mutual effectively funds the payment of claims. Each participating member is covered by their individually tailored level of income protection to a maximum protected value.
Maximum Protected Value
In most years Latevo Farmers Mutual will be able to fully fund itself and pay out claims to 100% of the maximum protected value. In exceptional years, such as the extreme weather events of 2018, there may be a need to pay out any claims to a proportion of the maximum protected value.
In essence, in an exceptionally disastrous year, unless the mutual has had time to retain earnings and create a buffer to deploy in such years this could mean that the mutual discretionary fund may need to pay less than the maximum protected value.
For example, if the pool of available funds to pay claims is only $40 million but the value of the claims is $50 million then each approved claim would receive a proportional 80% of their maximum protected value.
The aim of the Latevo Farm Mutual is that within three to four years we will have the strength of membership to pay out all approved claims to 100% of their maximum protected value.
By the farmer. For the farmer.
The governing board of Latevo Farmers Mutual is highly inclusive with up to 50% of the board to be farmers. Grower appointments are in the process of being made.
Decisions made on claims and any member disputes will be decided by the board. Which means that the decisions made by the board of Latevo Farmers Mutual are made in the interest of farmers. Not in the interest of a corporation.