Q3 2024 Earnings Conference Call and Webcast Slides
The Role of Crop Insurance in Managing Risk
1. The Role of Crop Insurance in
Managing Risk
Dr. Laurence M. Crane
NATIONAL ASSOCIATION OF COUNTY AGRICULTURAL AGENTS
97th ANNUAL NATIONAL MEETING
and
PROFESSIONAL IMPROVEMENT CONFERENCE
Ag Economics Super Seminar “Managing Agricultural Risks Under the 2012 Farm Bill”
July 18, 2012
Charleston Area Convention Center
Charleston, South Carolina
39. Multiple Peril Crop Insurance
All Industry Premium and Losses
1992 - 2011
PREM LOSS
$14,000,000,000
2011 Indemnities to date
$12,000,000,000
are more than $10.83 Billion
Loss ratio = 91%
$10,000,000,000
$8,000,000,000
$6,000,000,000
$4,000,000,000
$2,000,000,000
$0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
CROPYEAR
40.
41. Crop Insurance Total Liability
By Crop Insurance Type
2011
60.00%
53.93%
50.00%
PERCENTAGE OF TOTAL LIABILITY
40.00%
30.00%
24.65%
20.00%
13.71%
10.00%
3.50%
2.40%
0.35% 0.32% 1.13%
0.00%
YP RP RI/VI GRP DO AGR OTHER MPCI CROPHAIL
CROP INSURANCE TYPE
42. Crop-Hail Insurance Processing System
United States Premium & Loss Totals
2002 - 2011
1,000,000,000
900,000,000 2011 Indemnities to date
are more than $975 Million
800,000,000
Loss ratio = 115.86%
700,000,000
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Prem 389,300,231 407,777,972 413,959,742 412,255,308 403,756,745 487,780,025 667,984,964 619,771,914 680,871,137 840,215,205
Loss 282,265,460 228,080,312 241,872,184 183,676,253 202,183,331 234,924,946 554,581,621 565,911,203 459,481,671 916,856,418
43. Crop-Hail Insurance Processing System
United States Loss Ratio Totals
2002 - 2011
120.00
100.00
80.00
60.00
40.00
20.00
0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Series1 72.51 55.93 58.43 44.55 50.08 48.16 83.02 91.31 67.48 109.12