The King of Credit - Stockinsure celebrates 25 years

This is advertiser content for Stockinsure.

Stockinsure is the King of credit insurance for livestock agents in Australia, with insured sales turnover of billions to meat processors, butchers, abattoirs, feedlotters and live exporters.

Twenty-five years ago last Friday (August 23, 1994), Don Wright, alongside nine visionary agents in Orange, formed the Central West Selling Agents Co-operative Limited to protect their cash flow against unpaid sales proceeds.

Success was swift when two big NSW abattoirs "went bust" in the mid-1990s and the Co-operative was quickly able to recoup $500,000 for its members.

"I knew it wouldn't fail as nothing else existed that protected agents against financial loss if a purchaser defaulted," Mr Wright said.

"The secret to success has been our simplicity. The program is user-friendly and created by agents for agents. We knew exactly what was needed.

"Our focus for the past 25 years has been our members."

Since 2001, the Stock and Station Agents Co-operative Limited has administered Stockinsure through a Board of Directors which, along with three staff, provides valuable local knowledge, as well as sound governance.

Mr Wright, who has been Chairman of the Board for the past 14 years, said the national footprint of the Co-operative - and its credit management record - gave it the purchasing power to provide benefits to members that were unmatched elsewhere.

"No-one can compete with us," he said. "And the Stockinsure brand just keeps getting stronger as more businesses realise the benefits and how easy it is to be insured.

"Banks, in particular, look very favourably at livestock agents on our members' list as they trust we will cover any debt incurred. The big financial institutions respect us highly."

According to Stockinsure CEO Matthew Starr, the Co-operative is financially sound and can, under the Board's discretion, supplement the 90 per cent claim that the underwriter pays.

"A Stockinsure member may even get 95pc or 100pc of the loss," he said. "And Stockinsure has often rebated levies when the Board felt it was best for its members."

Uniquely, Stockinsure members pay only the levy on insured buyers. Additional costs, such as administration fees, stamp duty and mercantile reports are waived.

"In comparison, a competitor's member must pay stamp duty, limit charges and possibly a service fee," Mr Starr said. "This can easily add up to 15 to 20pc on the cost of insurance."

Another benefit Stockinsure members enjoy is the freedom to conduct unlimited trades with any buyer on the insured buyers' list.

And, because Stockinsure has the backing of four insurance companies, as opposed to one, members have more chance of placing a buyer on the insured buyers' list.

"Unlike a competitor's member, they do not compete for cover with other members or policy holders," Mr Starr said. "They can just trade without any worries."

All Stockinsure members are given access to livestock software, which allows them to easily administer their obligations under the program.

With the push of a button at the end of the month, all buyer reporting is complete, as well as levy contributions. Outstanding updates can also be produced.

Mr Wright, who in 2002 was made a life member of the Australian Livestock and Property Agents Association in recognition of his contribution to the industry, said Stockinsure was one of the big successes of his life.

"I am very proud of our Co-operative," he said.

"We are the preferred provider of credit insurance for stock and station agents in Australia and, due to the dynamic nature and competitiveness of the livestock industry, our program has played a vital role in the ongoing sustainability of the profession.

"Starting with 10 agents in Orange 25 years ago, our Co-operative has become a leader within its sphere."

This is advertiser content for Stockinsure.