Who Are Approved Insurance Providers (AIPs)?

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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 Federal crop insurance regulated by the USDA.  There are currently 13 AIPs who collectively offer coverage for more than 130 crops and livestock in all 50 states. A list of AIPs that provide coverage in each state is available here.

To qualify as an AIP, a company must demonstrate that it has the requisite financial and operational resources, organization, experience, internal controls, and technical skills to meet complex Federal crop insurance program requirements. After approval, continued year-to-year participation in the program is conditioned upon satisfactory performance.

Private companies were first enlisted to deliver Federal crop insurance in 1981 after government-delivered insurance failed to gain popularity. Private-sector delivery of the program was intended to spur greater participation. Since that time, coverage has expanded greatly thanks in part to private-sector efficiency, ingenuity, and personal relationships forged through other lines of farm, property, and auto insurance needed by farmers.   Today, AIPs work closely with a network of agents to tailor coverage for farmers’ individual needs. They employ thousands of employees and contract loss adjusters who process claims and quickly provide indemnity checks after disaster strikes. The companies continue to maintain and improve the vast infrastructure required to service the 1.1 million policies covering 380 million acres nationwide.

*Updated April 2021