This article provides an overview of the crop insurance program in the US provided by the Federal Crop Insurance Corporation via a network of private firms. We review the evolution of the program during the past two decades and suggest an approach to model the loss to liability ratio. We show that the Weibull distribution provides a reasonable option to model the loss payments between 0% and 100% of the liability levels, a finding consistent with prior research on insurance claims modeling.
Prediction is difficult, especially about the future!