As the avian influenza virus (bird flu) continues spreading around the globe (opens a new window), poultry farmers need to stay alert and remain vigilant with mitigation measures. In addition to monitoring local and regional incidence rates and closely following risk mitigation standards, poultry farmers should consider making use of insurance protection while it remains available.
Rising incidence of bird flu
The highly contagious nature of bird flu and the potential economic losses it can cause for poultry farmers makes it a critical area for risk management and preparedness.
Bird flu viruses are either high or low pathogenic viruses (HPAI and LPAI, respectively). Poultry infected with LPAI viruses may show mild signs of the disease or none at all. Infections caused by HPAI can cause severe disease and death. Both HPAI and LPAI can spread quickly through flocks. Moreover, certain LPAI viruses can mutate into highly pathogenic strains, which is why it is important that outbreaks are managed promptly.
Infected birds can shed bird flu in their saliva, nasal secretions, and faeces. Susceptible birds become infected when they have contact with the virus as it is shed by infected birds. They also can become infected through contact with surfaces that are contaminated with the virus. Wild birds are natural hosts and reservoirs for all types of bird flu, so play a major role in the evolution, maintenance and spread of these viruses.
The last quarter of 2024 saw an increase in cases of bird flu in wild and domestic birds compared to the previous quarter in Europe, according to the European Food Safety Authority (opens a new window) (EFSA). Most of the detections in both wild and domestic birds were found in South-Central Europe, mainly in areas with a high concentration of poultry farms, suggesting that the large number of farms in these areas and the type of poultry production contributed to disease spread between farms.
Meanwhile, authorities in the US have reported a significant surge in cases among cattle (opens a new window), with more than 800 establishments affected in 16 states. The virus was also recently found in batches of raw milk sold in retail shops in California. Additionally, a different virus strain was detected in pigs for the first time (opens a new window) in Oregon, in a mixed livestock-poultry farm. This is of concern, given the potential for pigs to be co-infected by different types of influenza viruses that could adapt and spread to other species.
Key risk factors for bird flu
Among the factors that can heighten the risk of bird flu outbreaks are:
Proximity to wild bird habitats – farms near wetland areas or migratory bird pathways are at higher risk
Biosecurity lapses – inadequate farm hygiene and failure to enforce biosecurity protocols increase the likelihood of disease spread
Climate change – altered migratory patterns due to climate change may increase the risk of new strains being introduced to farms.
Supply chain disruptions – delays in culling, testing, and restocking lead to longer recovery times for affected farms
The direct impact of an outbreak is substantial. Farmers face the immediate cost of culling infected flocks, lost revenue from egg and meat production, and potential trade restrictions. Indirectly, outbreaks of bird flu can lead to long-term reputational impacts on local, regional, or national food exports, and heightened regulatory scrutiny. Exposed parties may see increased insurance premiums, since insurers that underwrite business interruption and livestock mortality policies experience significant claims exposure during an outbreak. Regulators often impose movement restrictions during outbreaks, causing operational bottlenecks that affect supply chains.
Mitigating the bird flu risk
Managing the risk of avian flu requires a proactive, multi-layered approach that combines prevention, preparedness, and response. Key strategies include:
Enhanced biosecurity measures – disinfection points for vehicles, restricted access to poultry sheds, and personal protective equipment for workers
Wildlife management – reducing farm exposure to wild birds through the use of nets, covered feed areas, and other deterrent measures
Monitoring and surveillance – early detection is crucial, and farms should implement regular testing and collaborate with local, regional, and national government to receive timely alerts about outbreaks
Insurance and financial protection – comprehensive insurance coverage, including business interruption and livestock mortality, provides a financial buffer against the impact of an outbreak
Contingency planning – farms should develop outbreak response plans, including protocols for rapid culling, disposal of infected stock, and resumption of operations.
Biosecurity checklists for poultry and captive bird keepers are available from both the UK Animal and Plant Health Agency (opens a new window) and United States Animal and Plant Health Inspection Service (opens a new window). To understand the risk exposure of a farm, potential entry points for the virus, and develop a strategy to prevent an outbreak, farmers should first make a risk assessment of the premises, ideally taking advice from a risk professional or an insurer. Tackling the growing risk of bird flu for farms will require a collaborative approach involving farmers, insurers, policymakers, and the wider agricultural sector.
Enhance resilience with insurance solutions
In the event of a bird flu outbreak, the government authority responsible for agriculture will, almost certainly, order the slaughter of all birds at an infected farm, and possibly farms in close proximity, in order to mitigate the risk of spread of the virus. Compensation is likely to be available for the direct cost of the birds affected, and potentially to cover the associated clean-up costs. However, this compensation will not cover any ensuing business interruption losses while business returns to full operations.
A Commercial Livestock Avian Influenza Insurance policy is intended to provide a degree of indemnity for this loss of revenue. Insurance solutions can provide cover for the cost of livestock losses, clean-up, and business interruption. In addition, insurers may be able to assist with emergency response, culling protocols, and claims processing in case of an event. By aligning insurance coverage with risk reduction measures, farms may also be able to reduce premium costs while enhancing resilience.
Farmers looking to secure insurance protection against a bird flu outbreak should note the following:
Bird flu cover is limited and not readily available in all regions given severity of potential losses.
Cover is often sub-limited to provide a proportion of the full limit (a means for insurers to limit their exposure, given the large potential losses associated with bird flu).
Insurers will request information before providing cover, such as the number of birds in each location and the number of farms in the vicinity. Underwriters will combine this with broader outbreak data to calculate the risk of cross infection. Underwriters will also want to see evidence of adherence to bio security protocols.
Insurers look more favourably on known clients and policyholders (i.e. those with whom they have an existing relationship). We therefore suggest that policyholders take out a livestock insurance policy that covers the livestock in the event of death by an insured peril.
Once a bird flu outbreak has occurred, it is far more difficult to obtain cover. As a preventative measure, we advise taking out bird flu cover before an outbreak occurs.
If bird flu is already present in your region, holding an existing livestock insurance policy will put you in a better position to obtain a bird flu insurance top-up.
Many governments require suspected cases of bird flu to be reported to a relevant authority. Online resources are to monitor outbreaks of bird flu, which may help to assess the current risks to a farm or flock:
In the US, via the Centers for Disease Control and Prevention (opens a new window).
In the UK, via the Animal and Plant Health Agency (opens a new window).
In the EU, via the EURL Avian Flu Data Portal (opens a new window).
For further information and help securing cover, please contact a member of our Livestock team.
