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Nevada, Iowa | I copied the below paragraph from this page - https://cropinsuranceinamerica.org/who-shoulders-risk-in-crop-insura...
The Federal government acts as a reinsurer by providing insurance for the insurance companies. As such, the government bears an agreed-upon portion of the companies’ underwriting losses, and in return, the government takes a share of the companies’ underwriting gains. In short, as a reinsurer the government will help shoulder excessive losses in bad years like 2012, but will receive underwriting gains from farmer premiums in good years.
I am aware that one should not believe everything on the internet but "assuming" this is true, who is to say what the bottom line is to the federal government? We always hear of the subsidies but do we ever hear of any profit sharing? Granted, if this facet is run like every other extension of our bureaucracy, it's probably a money loser but it may not be as extreme as we think. After all, private companies would not be scrambling for our business if it were always a losing proposition. I guess what I am really getting at is, we may not know the whole story. | |
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i appreciate coup loading the bases
