October 9, 2003

British Agri Insurance Refuse to Insure GM Crops

Major British agricultural insurance companies has decided not to insure farmers who intend to grow genetically modified crops, the London Telegraph said Wednesday.

The news deals a further blow to government hopes of approving at least one crop for commercial cultivation next year.

The decision was part of a survey conducted by working farmer members of Farm, a campaign group. It notices insurance companies unwilling to take on the risk of liability claims against farmers who grow GM crops.

Rural insurance underwriters told the farmers they were concerned "GM could be like thalidomide -- only after some time would the full extent of the problems be seen."

"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 5 years' time," one insurer said.

Rural insurers are so concerned at the scope for liability claims if the government approves GM crops. They are even refusing to insure non-GM farmers against losses or liability due to contamination by GM pollen.