Steady Leadership in Uncertain Times: Addressing Challenges in the Forestry Insurance Market

By Bill Dine, AAI,?President, CEO Forestry Mutual Insurance Company

Navigating the Challenges

Forestry Mutual Insurance Company continues to navigate the complex landscape of the forestry market with unwavering commitment. Our deep industry knowledge and robust carrier partnerships enable us to offer competitive coverage options tailored to our policyholders' unique needs. With over fifty years of experience, we are equipped to guide our clients through these challenging times.

Our expertise in the wood products industry—including logging, chipping, log hauling, and mill operations—allows us to collaborate effectively with key business partners. This collaboration helps us address the complex insurance needs of our policyholders, reinforced by endorsements from leading trade associations. Together, we build resilient partnerships to tackle daily challenges head-on.

Adapting to Industry Changes

The insurance industry is experiencing heightened loss activity, especially in property and auto lines, leading to higher rates and reduced capacity from both primary insurers and reinsurers. This trend impacts all businesses, including the Forest Products industry. Social inflation is a significant factor, causing claims that once settled for $100,000 to skyrocket to five, ten, or even twenty times more. These inflated costs have become the norm, creating concern among insurance carriers about their capital exposure. As a result, rates increase and reinsurer capacity diminishes, leaving buyers with fewer options and difficult decisions. This growing issue demands our attention and action.

Embracing the Future

At Forestry Mutual, we are committed to helping our policyholders manage their risks with top-tier loss control services and innovative technology. Our goal is to reduce losses from log hauling and provide the insurance products necessary to protect businesses from financial hardship. By promoting the use of dashcams and telematics, we strive to enhance driver safety, improve transport efficiency, and combat social inflation. Our dedication to maintaining best-in-class loss control remains steadfast.

Despite the challenges facing the forest and logging industry, Forestry Mutual is dedicated to creating new opportunities. Our focus on specialized knowledge, strong partnerships, and advanced technology paves the way for a more robust and sustainable industry.

Gratitude for Our Policyholders

We extend our heartfelt thanks to all our policyholders for your continued business. We understand you have choices, and we are devoted to delivering the best insurance experience possible. We are here to support you and address your insurance needs.

To find out more about Forestry Mutual and the classes of business we serve, please visit www.forestrymutual.com