Where is your Crop Insurance Agent? Understanding the Geographical Distribution of Agents
Year: 2026
Type: article
Abstract: Following the modifications to the Standard Reinsurance Agreement (SRA) in 2010, there was limited understanding of the impact of policy changes on agent availability. Our objective is to construct a model of the equilibrium supply of crop insurance agents and to test hypotheses regarding the factors influencing agent concentration, such as commissions, competition, and risk. We developed a theoretical equilibrium model of the federal crop insurance market, which encompasses three tiers: insurance companies, agents, and farmers. The model incorporates key features of the federal program, including government-set premiums and the stipulation that agents cannot refuse coverage or modify premiums for farmers within their jurisdiction. Agents derive their income from commissions, which are a percentage of the premiums on the policies they sell. The model consists of: farmer demand, insurance company behavior, and agent entry and equilibrium.
Authors: Walters, Cory, Delay, Nathan
Language: English
Subfield: Soil Science
Domain: Life Sciences
SDG: Zero hunger
Open Access status: green
OpenAlex ID: W7034832659
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