Drought risk policy to pay out $40 million claim

Australia-based agribusiness GrainCorp Ltd. is set to be eligible for as much as $57.3 million Australian dollar ($40.41 million) in claims payouts in the first year of its drought risk policy, Artemis.bm reported citing report by The Australian Financial Review. The arrangement, facilitated by Aon P.L.C.'s Bermuda-based White Rock Insurance (SAC) Ltd., protects GrainCorp against the risk of drought if the company’s grain production plunges below the pre-agreed threshold.

Source: Business Insurance