Crop Insurance What Do Companies Do To Earn Money
October 8th, 2007 by David Graves
What do companies do to earn money for delivering federal crop insurance?
Companies earn money in two ways for their involvement in delivering the federal crop insurance program. First, companies are partially reimbursed for the cost of selling and servicing crop insurance policies. These activities include the full gambit of actions that any insurance company must engage in to have a successful insurance business, including, but not limited to, agents, agent training, adjusters, adjuster training, claims processing, technology investment and marketing. Secondly, companies share in underwriting gains and losses by sharing liability risks. Underwriting gains are necessary to attract and maintain capital and management and to cover delivery expenses not reimbursed by the federal government.