Missouri regulators will require the state's farm-mutual companies to purchase reinsurance to protect their maximum annual loss of surplus for property risks, a response to the 2011 Joplin tornado that put one insurer in distress.
The Missouri Department of Insurance adopted new regulations this week that require farm-mutual companies to "carry enough reinsurance that future losses would not deplete its surplus by more than 20 percent in one year."
Rural Missourians obtain their coverage from the state's farm-mutual companies if it is difficult for them to obtain coverage from traditional property and casualty insurers.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
