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Veteran Advisor
Posts: 1,663
Registered: ‎06-30-2010

Re: Sorry

Regarding this statement, "Due to our risk profile, we pay more...so the Iowa
Corn people are not paying for ks/Okla people."  Not arguing with that, yet generally --

 

Loss ratios are reported for all multi-peril crop insurance in all states and crops.  Loss ratio is loss indemnities paid divided by premiums paid.  In those states where loss ratios exceed 100%, those losses are in effect covered (subsidized) by states where loss ratios were less than 100%.  Some examples of loss ratios from 2017 (all multi-peril crop policies) --

 

Nebraska 32.88%

Illinois 29.17%

Iowa 26.85%

Kansas 41.27%

 

New York 152.77%

Florida 218.41%

Montana 155.62%

Hawaii 134.21%

 

Source -- https://www.naic.org/prod_serv/MSR-PB-18.pdf

 

 

People obviously have a variety of reasons for buying (or not buying) crop insurance, and levels of crop insurance coverage, not unlike insurance on buildings, vehicles, lives, etc.