Summary of Premiums
and Losses
Crop
year 1/ |
As of Feb 5, 2009 |
Premiums 2/ |
Losses |
Loss ratio |
| Billion dollars |
Percent |
| 2008 |
9.86 |
6.21 |
63 |
| 2007 |
6.56 |
3.54 |
54 |
| 2006 |
4.58 |
3.50 |
77 |
| 2005 |
3.95 |
2.37 |
60 |
| 2004 |
4.19 |
3.21 |
77 |
| 2003 |
3.43 |
3.26 |
95 |
| 2002 |
2.92 |
4.07 |
139 |
| 2001 |
2.96 |
2.96 |
100 |
| 2000 |
2.54 |
2.59 |
102 |
| 1999 |
2.31 |
2.43 |
105 |
| 1999-2008 total |
43.30 |
34.14 |
79 |
1/ Crop year is year commodity is harvested.
2/ Premium listed contains both the producer paid premium and the federally subsidized portion of the premium.
Crop insurance premium rates are calculated using generally accepted actuarial methods to
attain a break-even loss ratio of 100 percent. Individual years fluctuate depending on many variables,
including weather patterns and commodity prices.
The goal is for the long-term loss ratio average to be at 100 percent.
Crop Year Statistics as of Feb 5, 2009
| Item |
2008 |
2007 |
2006 |
2005 |
2004 |
Policies |
Number |
| 1.10 |
1.10 |
1.10 |
1.20 |
1.23 |
Farmer paid premium |
Billion dollars |
| 4.16 |
2.74 |
1.90 |
1.61 |
1.72 |
| Premium subsidies |
5.70 |
3.82 |
2.68 |
2.34 |
2.47 |
| Total premium |
9.86 |
6.56 |
4.58 |
3.95 |
4.19 |
| Indemnities |
6.21 |
3.54 |
3.50 |
2.37 |
3.21 |
| Insurance protection |
89.34 |
67.35 |
49.83 |
44.26 |
46.60 |
Loss ratio |
Percent |
| 63 |
54 |
77 |
60 |
77 |
Increase in premium and indemnities during the last two fiscal years is due to higher prices for several
major insured commodities. Revenue price elections have increased significantly for corn, soybeans,
sorghum, wheat, rice, and barley. A secondary reason for the increase in premiums is that price
volatility increases the premium rates charged for revenue coverage.
Note: For weekly updates, please see the Summary of Business.
For more information, please contact Michael Drewel.
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