National Crop Insurance Services (NCIS) says indemnity payments in 2011 surpassed $9 billion for the first time in history—and Moody's Investors Service says this development could put smaller, geographically concentrated insurers at risk.
NCIS cites historic droughts in the Plains, flooding along the Mississippi River and deep freezes in the South for the $9.1 billion in payments and says that figure could grow to $10 billion as remaining claims are settled.
As noted in Moody's Weekly Credit Outlook, crop insurers are licensed by the Risk Management Agency of the U.S. Department of Agriculture and generally cede a large portion of crop losses to the federal government through the Federal Crop Insurance Corp.'s Standard Reinsurance Agreement.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
