Friday, January 29, 2010

Cost Per Policy

According to this;
“Peterson suggested changes in the commission payments to agents. Under the current formula of paying crop insurance agents, commission is based on the premium to insure a crop. Thus, increases in commodity prices have raised the commission paid to an agent on average, from $500 per policy in 2004 to $1,450 in 2008. ‘You can’t defend’ that payment level, Peterson said, adding that he believes that paying agents a specific fee for each policy written may be a better system of compensation.”
From a comment on Chris Clayton's blog:

Guys: In 2006 the Crop Insurance Companies Insured 242 million acres of crops and received $1.79 billion for their work and investment! For the 2008 crop they insured 272 million acres and received $4.65 billion for their work and investment. 2.6 times more money to insure 30 million more acres or a 12% workload increase for 30 million more acres! A nice little increase, right boys or windfall is maybe a better term? Please credit your source. Alan Roebke (REB-key)

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