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9/7/2012 - Crop-producing states expected to face significant losses

Corn crops have been devastated by drought.

With much of the United States caught up in severe drought conditions, a new report indicates that property insurance losses in various crop-producing states could be considerable.

The report, which was conducted by market services firm Milliman, indicates that 12 states - including Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin - could experience crop losses totaling nearly $3 billion when all is said and done. Some of the states most directly affected are those that produce large amounts of corn and soybeans, or what's more commonly referred to as the "corn belt."

"Using the estimated 147 loss ratio, the indemnity is forecasted to be about $8.8 billion, for an underwriting loss of $2.8 billion," the report noted.

With much of the world facing similar dry spells, the United Nations weather agency has called on nations to adopt more comprehensive drought-management policies.

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