10 Largest Multiple Peril Crop Insurance Companies in USA
10 Largest Multiple Peril Crop Insurance Companies in USA- According to the National Association of Insurance Commissioners (NAIC), there are 10 Largest Multiple Peril Crop Insurance Companies in the USA. Many farmers in Agriculture industries used these insurance products to cover the unpredictable losses when doing the business activity in Agriculture.
Many countries still depend on agriculture to supply and fulfil human’s consumption. The United States of America (USA) is one of the biggest countries in the world that still has huge production of Agriculture products. Some of the products are Soybean, Wheat, Maize, and others.
Commonly, in the process of its productions, Agricultural activity always faces many uncertainties, including natural disasters, unpredictable weather, pest & fungus infestations, and plant diseases. These effects can significantly reduce the yield or quality of a crop and sacrifice farmer’s profitability for the year when it gets a bad season. To face these conditions, some solutions can be implemented. One of them is crop insurance.
Crop insurance is purchased by agricultural producers, including farmers, ranchers, and others to protect against either the loss of their crops due to natural disasters, pest infestation, or the economic loss of revenue due to declines in the prices of agricultural commodities in specific time. Specifically, Multiple peril, or all-risk crop insurance, can protect against low yield and crop quality losses due to adverse weather (including hail) and unpredictable destruction from pest and plant disease. With these conditions, many insurance companies give the crops insurance products so the unpredictable losses in Agriculture can be reduced.
Statistically, there are 10 Largest Multiple Peril Crop Insurance Companies in the USA, and the data was obtained from the report of National Association of Insurance Commissioners (NAIC). Here are the ranks of 10 Largest Multiple Peril Crop Insurance Companies in the USA. These data were arranged based on the Direct Premium Written.
The Rank of 10 Largest Multiple Peril Crop Insurance Companies in USA
| Rank | Name of Crop Insurance Companies | Direct Premium Written | Market Share |
|---|---|---|---|
| US Dollar ($) | (%) | ||
| 1 | Chubb Ltd | 3,579,721 | 18.89 |
| 2 | QBE Insurance Group | 3,280,137 | 17.3 |
| 3 | Zurich Insurance Group | 3,168,857 | 16.7 |
| 4 | Sompo Holdings | 3,041,659 | 16.1 |
| 5 | Great American Insurance Group | 1,691,468 | 8.9 |
| 6 | Farmers Mutual Hail Insurance of Iowa | 1,331,645 | 7 |
| 7 | American International Group | 1,063,711 | 5.6 |
| 8 | Tokio Marine Group | 911,177 | 4.8 |
| 9 | AXA | 235,225 | 1.2 |
| 10 | Farm Bureau Financial Services | 227,346 | 1.2 |
| Source : NAIC, 2023 | |||
The Brief Description of 10 Largest Multiple Peril Crop Insurance Companies in USA
1.Chubb Ltd
Chubb is one of the world’s insurance companies in the U.S.A With operations in 54 countries. Operationally, Chubb has executive offices in Zurich, New York, London, Paris, and other locations, and employs approximately 40,000 people worldwide. According to the financial ratings, Chubb has financial ratings of AA from Standard & Poor’s and A++ from A.M. Best. Furthermore, in the agriculture industry, Chubb has some insurance products including Commercial Agribusiness Insurance, Rain & Hail Agriculture & Crop Insurance, and Farm and Ranch Agribusiness Insurance. Financially, in the report of National Association of Insurance Commissioners (NAIC), Chubb gained a direct premium written around 3.5 million US Dollar of Multiple Peril Crop Insurance.
2.QBE Insurance Group
QBE Insurance Group Limited is a reinsurance company that started its business in January 1886. Operationally, this company has a primary office in Sydney, New South Wales, Australia. With more than 11 thousand employees as of 2020, the company has become the one of the largest insurance companies in Australia. Financially, based on the balance sheet, the company has assets around 49 billion US Dollar and liabilities around 40.4 billion US Dollar. Based on the business performance in 2021, the company can generate revenue around 17 billion US Dollar with Net income around 527 million US Dollar.
In terms of the agriculture industry, QBE has insurance products namely QBE Farm Pack. Basically, QBE Farm Pack has been designed to cover risks unique to farming, whether the customers are major primary producers or just have a hobby farm. Some of the agriculture products that can be covered are Beef, Beekeeping, Cereal, Dairy, Fruit, Grain, Sheep, Sugarcane, Vegetables, and Vineyards. According to the report of National Association of Insurance Commissioners (NAIC), QBE Insurance Group Limited gained a direct premium written around 3.2 million US Dollar of Multiple Peril Crop Insurance.
3.Zurich Insurance Group
As the biggest insurance company in the world, Zurich has had a long journey in the insurance industry for more than 150 years since 1872. Operationally, Zurich Insurance Group Ltd has a primary office in Zürich. Along with business development, this insurance company has employed around 56 thousand people and provides a wide range of insurance products in more than 210 countries. According to the report of National Association of Insurance Commissioners (NAIC), Zurich Insurance Group gained a direct premium written around 3.1 million US Dollar of Multiple Peril Crop Insurance.
4.Sompo Holdings
Sompo Holdings, Inc. is an insurance company from Japan which was founded in 1887. Operationally, Sompo is headquartered in Shinjuku, Tokyo, Japan. In terms of agriculture industry, Sampo holding through AgriSompo provides crop insurance and productivity tools to farmers, ranchers, farm suppliers, insurers, and agribusinesses around the world. Some of the agricultural insurance products, namely traditional Multi-Peril Crop Insurance (MPCI), livestock coverage, and an impressive selection of private and crop hail products. According to NAIC, Sompo Holding gained a direct premium written around 3 million US Dollar of Multiple Peril Crop Insurance.
5.Great American Insurance Group
The Great American Insurance Group started its business 1872 and still has a central office in Cincinnati, Ohio. Based on the financial ratings, Great American Insurance Company has received an “A” (Excellent) or higher rating from the AM Best Company. In terms of the agriculture industry, Great American Insurance Group has some agriculture insurance products. These products include Named Peril Insurance / Private Products, Multiple Peril Crop Insurance, and Crop-Hail Insurance. According to NAIC, Great American Insurance Group gained a direct premium written around 1.69 million US Dollar of Multiple Peril Crop Insurance.
6. Farmers Mutual Hail Insurance of Iowa
Farmers Mutual Hail has served American farmers and their families since 1893. As USA’s Crop Insurance Company, FMH provides risk management solutions, including private and federal crop insurance, reinsurance products and services, as well as farm and ranch insurance. According to NAIC, Farmers Mutual Hail Insurance of Iowa gained a direct premium written around 1.33 million US Dollar of Multiple Peril Crop Insurance.
7. American International Group
American International Group, Inc., also known as AIG, is an American multinational insurance corporation with diversified insurance products. Historically, it was founded by Cornelius Vander Starr on December 19, 1919. Based on the financial structure on the Balance sheet in 2021, total assets of AIG around 596 billion US Dollar and gained revenue around 52 billion US Dollar. According to the report of National Association of Insurance Commissioners (NAIC), the American International Group (AIG) gained a direct premium written around 1 million US Dollar of Multiple Peril Crop Insurance.
8. Tokio Marine Group
Tokio Marine Holdings, Inc. is a multinational insurance company which has a primary office in Tokyo. Historically, Tokio Marine started the business in 1879 with the name of Tokio Marine Insurance. Along with business development of the company, Tokio Marine has 41 thousand employees across the nations. Financially, in 2021, based on the balance sheet of the Tokio Marine, this company has assets around 27,245 billion Yen / 185 billion USD with Liabilities around 23,173 billion Yen / 157 billion USD. Furthermore, based on the business performance 2022, the company gained around revenue of 5,863 billion Yen / 39.8 billion USD and net Income around 410 billion Yen / 2.78 billion USD.
In the agriculture industry, through ProAg, Tokio Marine provides some agriculture insurance products including Crop Hail, Private Products, and Multiple Peril Crop Insurance. According to the report of National Association of Insurance Commissioners (NAIC), Tokio Marine Group collected a direct premium written around 911 thousand US Dollar of Multiple Peril Crop Insurance.
9. AXA
AXA is a France-based insurance company that was founded in 1816 by Claude Bébéar. In 2021, financially, based on annual report, the company has assets around 775 billion Euro / 776 billion US Dollar. In terms of the agriculture industry, AXA has Global Ag Insurance Services. Basically, Global Ag Insurance Services provides crop insurance and agricultural risk management solutions to farmers and crop producers across the United States.
Commonly, Global Ag participates in the Federal Crop Insurance Program offers both multi-peril crop insurance and named peril policies on behalf of AXA XL Reinsurance. According to NAIC, the AXA successfully collected a direct premium written around 235 thousand US Dollar of Multiple Peril Crop Insurance.
10. Farm Bureau Financial Services
Founded more than 80 years ago to serve the needs of farmers and ranchers, Farm Bureau Financial Services has grown to be one of the most comprehensive financial services in the USA. Operationally, Farm Bureau Financial Services still has a central office in West Des Moines, Iowa.
Commonly, in the agriculture industry, this company has some farm and ranch insurance products. Some of the products are Property Insurance Coverage, Farm or Ranch Liability Coverage, Farm Vehicle Insurance, Crop Insurance, Livestock Revenue Insurance, Business Succession, Loss Control Services, and Equine Insurance. According to the report of NAIC, Farm Bureau Financial Services successfully collected a direct premium written around 227 thousand US Dollar of Multiple Peril Crop Insurance.
The Summary of 10 Largest Multiple Peril Crop Insurance Companies in USA
Bibliography of 10 Largest Multiple Peril Crop Insurance Companies in USA
Insurance Information Institute (iii). 2023. Background on: Crop Insurance. Accessed via https://www.iii.org/article/background-on-crop-insurance#Top%2010%20Writers%20Of%20Multiple%20Peril%20Crop%20Insurance%20By%20Direct%20Premiums%20Written,%202022 on September 3rd, 2024
Chubb Ltd. 2023. Accessed via https://www.chubb.com/us-en/business-insurance/agriculture.html on September 3rd, 2024.
QBE Insurance Group. 2023. Accessed via https://www.qbe.com/au/business-insurance/farm on September 3rd, 2024.
Zurich Insurance Group. 2023. Accessed via https://www.zurichna.com/industries/agriculture on September 3rd, 2024.
Sompo Holdings. 2023. Accessed via https://www.sompo-intl.com/insurance/crop-insurance-international/ on September 3rd, 2024.
Great American Insurance Group. 2023. Accessed via https://www.greatamericaninsurancegroup.com/about-us/business-operations/division/crop on September 3rd, 2024.
Farmers Mutual Hail Insurance of Iowa. 2023. Accessed via https://www.fmh.com on September 3rd, 2023.
American International Group. 2023. Accessed via https://www.aig.com/producer-compensation on September 3rd, 2023.
Tokio Marine Group. 2023. Accessed via https://www.tmhcc.com/en-us/products/crop on September 3rd, 2023.
AXA. 2023. Accessed via https://axaxl.com/reinsurance/products/north-american-crop-insurance on September 3rd, 2023.
Farm Bureau Financial Services. 2023. Accessed via https://www.fbfs.com/insurance/farm-and-ranch-insurance on September 3rd, 2023.