Starr Indemnity & Liability Company, a unit of Starr International, is entering the crop-insurance market.
The company announced Wednesday that it has received approval from the Risk Management Agency of the United States Department of Agriculture to participate as an approved insurance provider in the federal multi-peril crop-insurance program for 2013.
Starr is one of two new insurers to enter the market recently. The other is XL, based in Dublin.
The industry has been consolidating for several years as the federal government, under pressure from free-market advocates and some members of Congress, has lowered the subsidies it.
Including Starr and XL, there are now 17 insurers in this market, led by Wells Fargo and Ace Ltd.
A Starr spokesman says Starr Indemnity & Liability Company will be working with International Ag Insurance Solutions, LLC, a managing general agency, as its servicer.
International Ag, based in Des Moines, mainly focuses on the corn, soybean and wheat markets in Illinois, Indiana & Iowa.
According to Starr officials, the decision to enter the crop-insurance market is an outgrowth of the hiring last year of Bob Coords as head of Starr Specialty Reinsurance, a division of Starr Indemnity & Liability Company. Coords is an expert in the agriculture sector and introduced Starr to the crop-reinsurance business.
Coords is based out of New York and reports to Charles Dangelo, president and CEO of Starr Indemnity.
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