Crop insurers reassure farmers
July 19, 2012 | 03:45 PM
National Crop Insurance Services, the crop insurance industry trade group, issued a news release Wednesday to reassure farmers that the industry has enough money on hand to handle any claims in this drought year.
Tom Zacharias
“For every dollar of premium that insurance companies write, they have a regulatory requirement to have the private financial backing to cover catastrophic losses,” NCIS President Tom Zacharias said in the news release. “Each year, the Federal Crop Insurance Corporation reviews and approves every company’s plan of operations to ensure that adequate capital is available,” he added.
“We’ve always been there for our farmer customers when they’ve faced tough times in the past and we’ll continue to be there,” he said.
Zacharias noted that in 2011, which was marked by widespread weather-related loss, companies made a record $11 billion in indemnity payments, and that most payments were made within 30 days of claims being finalized.
“For every dollar of premium that insurance companies write, they have a regulatory requirement to have the private financial backing to cover catastrophic losses,” NCIS President Tom Zacharias said in the news release. “Each year, the Federal Crop Insurance Corporation reviews and approves every company’s plan of operations to ensure that adequate capital is available,” he added.
“We’ve always been there for our farmer customers when they’ve faced tough times in the past and we’ll continue to be there,” he said.
Zacharias noted that in 2011, which was marked by widespread weather-related loss, companies made a record $11 billion in indemnity payments, and that most payments were made within 30 days of claims being finalized.
