Reinsurance Services Division
June 8, 2021
We recently highlighted an employee from the Rain and Hail insurance company, and we are grateful for the successful relationship we enjoy with Approved Insurance Providers (AIPs). Working together we have done a superb job of supporting the American farmer.
If we are to provide producers with the “effective, market-based risk management tools” that we talk so much about, there must be an efficient delivery system to get these tools in their hands.
One of our offices, the Reinsurance Services Division, or RSD, has an important mission to monitor and analyze AIPs to determine whether they have sufficient financial and operational resources to deliver the Federal crop insurance program.
An AIP’s continued participation in Federal crop insurance must be approved by RMA on a regular basis. The RSD team engages with AIPs to approve and sign what is called a Standard Reinsurance Agreement. This agreement includes the responsibilities and expectations USDA has of an AIP regarding their program administration.
RSD provides advice and guidance on the Standard Reinsurance Agreement, both within RMA and to the AIPs. RSD also conducts performance monitoring of the AIPs throughout the year using analysis and oversight tools.
As we wrapped up our quarterly FCIC Board Meeting the other week, I thought about the RSD team and their important role in our agency. I was fortunate to talk with Director, Dave Miller, and Deputy Director, Kenya Ingram, to find out a little more about what they do. Dave has been working on Standard Reinsurance Agreements and fostering good relations with AIPs since 1993. He previously worked for an insurance company on their reinsurance program. Kenya Ingram worked for our Product Management area for six years, before joining RSD in 2015.
Richard: What are the most challenging aspects of RSD’s mission?
Dave: In addition to overseeing AIPs authorized to participate in the crop insurance program, we also monitor the marketplace performance of AIPs as they are competing against each other for business and there are some rules they must adhere to.
Dave Miller, Director, RMA Reinsurance Services Division
Richard: That sounds like quite a lot of factors to monitor and consider.
Kenya: It is. And this can be challenging due to the constant change among the AIPs including program entrance and exits, mergers and acquisitions, geographic and insurance plan shifts in concentration. These changes can result in challenges for the AIP which must be addressed to ensure adequate delivery and service.
Richard: What is the latest item you are working on?
Kenya: We are working with other RMA and USDA offices to gather reinsurance accounting data. This provides us with the ability to better analyze an AIPs business strategy and profitability.
Kenya Ingram, Deputy Director, RMA Reinsurance Services Division
Richard: Much of that data is gathered and analyzed with the latest software, programs such as Tableau.
Dave: Yes. Also, we recently created the “Review and Evaluation of Company Annual Performance (RECAP)” dashboard which provides an overview of an AIPs performance. Other areas within RMA are conducting AIP reviews and gathering performance data, and the findings are rated and submitted into RECAP to create an aggregate performance summary.
I want to thank Dave and Kenya for taking time to talk to me and share insights about our interactions with our most valuable partners. I appreciate all our offices throughout RMA, each playing an important role to strengthen the economic stability of agricultural producers and rural communities.