Crop Insurance Today Fourth Quarter 2022 - 38

Continued from page 1
decades of crop insurance program knowledge
and experience personified by the women and
men employed in both the public and private
sectors.
Accompanying the investment in human capital
in crop insurance is the investment of financial
capital by the private sector delivery system.
It is fair to say that over time the private sector
has " broken out a few pesos " investing in our industry.
At least a few of the crop insurance companies
currently in the business can trace their
involvement back over one hundred years. One
of these century-plus companies still maintains
its family operation and management of the business.
This level of commitment would suggest
that the companies involved in crop insurance
" like the view. "
So, what is the " view? "
Currently Federal crop insurance is characterized
by a high level of participation. Approximately
90 percent of the major field crop acres in
the United States have some level of Federal crop
insurance coverage. Over 80 percent of insured
acres have at least 70 percent coverage levels or
higher. On the crop side, premium volume has
nearly doubled from approximately $10 billion in
2018 to approximately $18 billion in 2022. The
livestock segment of the business has also grown
dramatically reaching approximately $850 million
for 2022. Specialty crop coverage has essentially
tripled from $7 billion in 2000 to $21 billion
in 2022. Quite a view... (but I digress).
" Breaking out a few pesos and liking the view "
speaks to the importance of the long-term financial
viability of the private sector delivery system.
The private sector delivery system " ain't just passing
through " and the investment of private financial
capital is not about " just feeling lucky " but
rather focused on risk management, both at the
farm and corporate level. At the program level,
" feeling lucky " is not good enough, it is critical
that actuarial soundness and program oversight
be guiding tenets. As witnessed over the years,
enhanced underwriting criteria, improvement
in data collection and actuarial methodology,
as well as data mining reviews are " changes that
have come down for the better... "
Some things may and will change, but it is imperative
that the financial viability of the delivery
system remains a priority for both the public and
private sector.
36 FOURTHQUARTER2022
Focus on the
Future
What Change
Lies Ahead
" ...Like Noah said you'd better wake up
You don't want to get stuck in this zoo
Cause when he leaves the dock
He ain't waiting 'round for you
Be prepared to change some too... "
In all things, we must be mindful of the
changes and uncertainty facing our industry.
Agriculture is an incredible and ever evolving
industry and in this " space and time, " agriculture
has never been more prominent on both the
domestic and international stage. The challenges
have never been greater. Population growth
exceeded eight billion inhabitants just this past
month. Water resource availability is a severe
problem globally and in our western states. Extreme
weather events and climate variability can
be considered the " new norm. " The role of crop
insurance is to provide the financial backstop for
our nation's farmers and ranchers as they face uncertain
weather and market conditions. As such,
we need to stay awake, focus on the future, and
avoid being left behind at the " dock. "
As the Boz would say, " be prepared to change
some too. "
In This Issue
NCIS has been providing scholarships to students
at 1890 universities for more than a decade.
And our recent recipients are, once again, excellent
students with a passion to study agriculture
and make their part of the world better for others.
Meet these students beginning on page 16.
The summer loss adjustment schools are an
important part of the NCIS mission to provide excellent
service to our members. Due to Covid-19,
the schools had to be canceled in 2020, and were
provided virtually in 2021. It was great to get
back into the field in person once again this year.
Hundreds of loss adjusters participated in schools
across the country studying a large variety of
crops. That story can be found starting on page 5.
The International Hail Congress (AIAG) met
earlier this year in Turkey, and NCIS' senior
economist, Harun Bulut, participated and presented
at the conference. His article on page 22
provides an inside look at how other countries
around the world utilize crop insurance to protect
their farmers and highlights the events and
speakers from the conference.
We introduce you to several Michigan farmers,
agents, and loss adjusters beginning on page
10. These are the last of our interviews for this
year's Crop Insurance Profiles Project, highlighting
the people who rely on crop insurance when
disaster strikes and those who work behind the
scenes to ensure the farmers have the tools they
need and respond quickly when losses occur. You
can find these and all of the videos at CropInsuranceInAmerica.org/Real-Stories.
And
lastly, Lynnette Dillon, NCIS, introduces
the new digital Crop Adjuster Proficiency Program
(CAPP) card for loss adjusters. This new
card will make things much more efficient for
adjusters, supervisors, and CAPP administrators.
Adjusters will be able to access and view
their card on their phone and administrators can
immediately ensure that all adjusters are current
with their certification.
We wish you all a safe and Happy Holiday
season! See you in 2023!
http://www.anceInAmerica.org/Real-Stories
Crop Insurance Today Fourth Quarter 2022

Table of Contents for the Digital Edition of Crop Insurance Today Fourth Quarter 2022
