AIP is an acronym for an Approved Insurance Provider. An AIP is a state chartered property and casualty insurance company that has executed a Standard Reinsurance Agreement (SRA) and/or Livestock Price Reinsurance Agreement (LPRA) with the Federal Crop Insurance Corporation (FCIC). As a party to the SRA, the AIP is authorized to sell and service Federally regulated multi-peril crop insurance companies. There are currently 15 AIPs, which collectively offer coverage in all 50 states on more than 130 different crops. A complete list of what AIPs provide coverage in each state is available here.
To become an AIP, a company must demonstrate that it has the requisite financial and operational resources, organization, experience, internal controls, and technical skills to meet crop insurance program requirements, including addressing reasonable risks. After initial approval, the AIP must continue to demonstrate a satisfactory performance record to hold an SRA for subsequent years.
AIPs were first tapped to deliver Federal crop insurance in 1981 after government-delivered insurance failed to gain popularity. Since that time, coverage has expanded greatly thanks in part to private-sector efficiency and ingenuity. Today, AIPs work closely with a network of agents to tailor coverage for farmers’ individual needs, and they employ thousands of employees who process claims and quickly provide indemnity checks after disaster strikes. They also maintain the vast infrastructure required to service the 1.1 million policies covering 311 million acres nationwide.
* Updated August 2018