FMG is a 117 year-old direct mutual insurer; a small, but influential part of New Zealand’s insurance sector. It insures over half of the famers and growers in New Zealand, where agriculture is the country’s largest industry.
FMG’s vision is ‘Helping to build strong and prosperous communities’. Their purpose is to provide ‘a better deal for rural New Zealand’.
They use humour in their advertising and marketing to be memorable and disarming. They try to make people smile when they think about their brand.
There is massive competition from domestic stock-owned PLC insurers. The only way they believe that they can succeed, is having an unrivalled intimacy with customers as well as efficiency and innovation. Their strong personal connections give them a competitive advantage that can’t easily be replicated.
Advice is at the core of their prevention strategy. They were inspired by Simon Sinek’s ‘Golden Circle’: ie people don’t buy what you do, they buy why you do it. At FMG their ‘why’ is ‘getting a better deal for rural New Zealand’.
Mutuality makes FMG a distinctive brand, while their advice provides a strategic differentiator as an insurer.
Advice is delivered in many ways: personalised reports, tools, workshops on farms and in communities, thermal imaging of buildings, etc. They work with clients to manage their risks and use humour to break down the barriers and remain memorable.
Case study one: Tractor fires
During Spring, Starlings (small birds) build nests in tractors as they are cool and dark places. When the tractor starts up, the combustion reacts with the nest causing expensive tractor fires.
Using ‘nudge theory’ and mitigation strategies, FMG has successfully delivered three years of their ‘Stop and Pop’ campaign to farmers. They issue stickers to put onto tractor bonnets/hoods to remind the farmer to ‘pop’ open the hood to check for nests before starting the engine. This simple risk prevention strategy has reduced claims over a three year period by NZD 2.6 million. As well as reducing claims, it is helping farmers avoid expensive disruption and some uninsured losses.
Case study two: Rural wellbeing
Farmstrong; Live well, Farm well. This is an award-winning mental health programme launched in 2015 with Mental Health Foundation of New Zealand. Behavioural science and farmer-to-farmer stories are shared to improve mental resilience in rural communities, including signposting towards how farmers can seek help. They want farmers and growers to live well.
New Zealand All Black (rugby player) Sam Whitelock, is Farmstrong’s Ambassador. He is also a farmer and a high profile personality.
Every year they survey farmers: 23% say that this scheme supports their mental wellbeing. It has the potential to save lives and give back in an area that needs more support. 58% acknowledged that their poor mental health had contributed to accidents at their farms. There have been more than 2,000 fewer accidents on farms as a result of this initiative.
Sustainability is at the core of mutuality at FMG
Following a materiality assessment involving rural farming members, the FMG board and FMG staff, they concluded that access to fair and affordable insurance is FMG’s leading concern; as is climate change and natural disasters. By 2030, FMG will transition its vehicle fleet to hybrid or electric vehicles.
An application for B Corp certification is also underway. This offers FMG a holistic view of sustainability. They are 3-6 months away from the audit and if successful they will be first insurer in the country to get this certification.
