Crop Insurance: New Markets, New Realities
Conning—Restructuring of U.S. Crop Insurance Market to Continue
(Hartford, CT) November 14, 2017—The dramatic market changes in U.S. crop insurance market participation are likely to continue, according to a new study by Conning.
“The U.S. crop insurance market has undergone dramatic structural change in recent years as the industry has responded to profitability challenges,” said Rebekah Humphrey, an Assistant Vice President at Conning. “These margin pressures include changes to the risk sharing economics of multi-peril crop insurance with the federal government, continued low commodity prices, and poor performance of private crop insurance products.”
The Conning study, “Crop Insurance: New Markets, New Realities” reviews both the multi-peril crop insurance market as well as private crop insurance. The study analyzes the ownership evolution in recent years as well as the current competitive and regulatory landscape and expected future challenges and opportunities for growth.
“Ownership of the U.S. primary crop insurance industry has realigned through acquisitions by larger corporate owners,” said Steve Webersen, Head of Insurance Research at Conning. “Increased efficiency from benefits of scale has been a key goal of acquirers, in addition to deployment of new supporting technologies and value-added services to the farmer. These larger owners require less quota-share support, so in return reinsurers have responded by acquiring primary crop businesses to ensure access to this diversifying risk. Yet even with all this recent activity, we expect further consolidation among the market’s remaining participants, as companies continue to streamline their businesses.”
“Crop Insurance: New Markets, New Realities” is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
Conning (www.conning.com) is a leading global investment management firm with more than $117 billion in global assets under management as of September 30, 2017.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has offices in Boston, Cologne, Hartford, Hong Kong, London, New York, and Tokyo.
*As of September 30, 2017, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, and Cathay Securities Investment Trust Co., Ltd. ("SITE"). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning entities.