Drought-related crop-insurance losses could reach as high as $20 billion, according to the latest estimates.
“Although the 2012 growing season began on a very promising note, it became clear by the end of June that the crop-insurance industry was facing one of the worst agricultural droughts,” says catastrophe modeler AIR Worldwide, which issued a loss estimate of between $13 billion and $20 billion resulting from farmer claims.
AIR says it expects a gross loss ratio of the industry of between 120 percent and 180 percent.
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