Veteran Advisor
Posts: 1,711
Registered: ‎06-30-2010

Re: Sorry

Regarding this statement, "Due to our risk profile, we pay 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 --



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.