Crop Insurance Integrity Focus of Stepped-Up Campaign

NATIONAL CROP INSURANCE SERVICES

8900 Indian Creek Parkway, Suite 600

Overland Park , KS 66210

FOR IMMEDIATE RELEASE
May 23, 2007
Laurie Langstraat (913-685-2767)

Crop Insurance Integrity Focus of Stepped-Up Campaign

OVERLAND PARK , KAN … The leadership of the Risk Management Agency (RMA) and the crop insurance industry met in Kansas City this week in an effort to strengthen their oversight of the Federal Crop Insurance Program.

One of the most telling things they heard came from Dr. Bert Little of the Center for Agribusiness Excellence (CAE).

“About 0.2 percent, or less than one percent, of the policies in the crop insurance industry show up as anomalies in our data mining,” Dr. Little told the group. “That’s one heck of a lot better than property and casualty where 10-12 percent of the claims are fraudulent.”

CAE conducts the data mining of the crop insurance industry on behalf of the RMA.

The topics and the presenters on the agenda of this day and a half session discussed present methods of checks and balances along with new techniques on how to safe guard the program.

Data mining and how it’s results are incorporated into program development, compliance and insurance company training was the main discussion of the first day. Dr. William Black, Executive Director for the Institute for Fraud Protection described for the group how to build upon the private insurance industry’s current culture of professional and personal ethical behavior.

Congressman Jerry Moran (R-KS), Eldon Gould, Administrator of RMA, and Bob Parkerson , President of National Crop Insurance Services, kicked off the event. Representatives of the Kansas Bureau of Investigation (KBI), the National Association of Insurance Commissioners (NAIC), the RMA, and NCIS were also presenters during the conference.

The crop insurance industry writes over 1.3 million policies for producers totaling $3.1 billion in premium. This insurance protects almost 80 percent of the insurable crop acres throughout the United States .

The intent is for these groups to meet each year to critique present methods and discuss ever-changing technology to help maintain the integrity of this nationwide safety net for agriculture.

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