Crop Insurance:

Increases in Insured Crop Prices and Premium Rates Raise the Administrative Expense Reimbursement Paid to Companies

RCED-98-115R: Published: Mar 20, 1998. Publicly Released: Mar 20, 1998.

Additional Materials:


Robert A. Robinson
(202) 512-9894


Office of Public Affairs
(202) 512-4800

GAO reviewed: (1) the relationship between insured crop prices and the premium rates paid to insurance companies that sell and service crop insurance; and (2) alternative reimbursement methods that were presented in its April 1997 report and that the Federal Crop Insurance Corporation is considering.

GAO noted that: (1) average insured crop prices and premium rates have increased more since GAO's April 1997 report; (2) these increases have generated a 16-percent increase in the total crop insurance premiums paid since 1995; (3) because the administrative expense reimbursement paid to crop insurance companies is calculated as a percentage of total premiums, the increase in premiums will result in even higher payments in 1998 without a commensurate increase in workload; and (4) unless the current reimbursement percentage is reduced and the method for calculating reimbursements is modified, companies' reimbursement for administrative expenses will continue to exceed their workload.

Mar 5, 2018

Nov 30, 2017

Nov 27, 2017

Nov 21, 2017

Oct 24, 2017

Oct 2, 2017

Aug 24, 2017

Aug 14, 2017

May 15, 2017

May 11, 2017

Looking for more? Browse all our products here