Crop Insurance — Record Premium Growth

A.M.Best says premiums in the federal government’s multi-peril crop insurance program have hit a staggering 40% increase year-over-year. In 2021 they leaped to a record high $14.9 billion.

This statistic comes from Best’s report titled, U.S. Crop Writers Benefit From Rising Commodity Prices and Innovation. It also pointed out that private crop insurers did very well in 2021 and shows their premiums rising to $1.3 billion from $1.1 billion in 2021.

Connor Brach of A.M. Best said the MPCI program covered more than 444 million acres in 2021. That acreage has an estimated value of over $150 billion.

Commodity prices have risen significantly since 2019, driving MPCI rate increases and solid premium growth,” Brach said. Losses stabilized due to more favorable growing conditions as well as rising prices.”

Source link: Insurance Journal —

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