FCCS News & Insights

Farm Credit Captive Insurance Company Announces 2025 Updates

The Farm Credit Captive Insurance Company (the “Captive”) has finalized its 2025 renewal and is pleased to report that the FCCS Risk Management Team successfully negotiated a 3.1% increase in insurance costs—far below the 15%+ increases typically seen in the commercial market.

This renewal marks a key milestone in the Captive’s strategic direction, which has been evolving since December 2022. The Captive’s current strategy focuses on aligning more closely with Farm Credit’s risk, optimizing capital and investing in its people and capabilities to ensure the best possible protection from risk to benefit the Farm Credit System. As part of this effort, the Captive has introduced several new coverage lines, including Notary, Owned Property Pollution and Real Estate Lender’s Liability.

Additionally, the Captive has significantly increased its financial capacity, adding $91 million in coverage across 30 different coverage lines. This enhancement further strengthens the Captive’s ability to insure Farm Credit directly.

In December 2022, the Captive Board approved a long-term strategy to reduce reliance on the commercial insurance market, where Farm Credit can be rated against itself as opposed to subsidizing less favorable risk. In 2024, the Captive made notable progress by increasing its assets by $15.5 million, bolstering its capacity to handle future claims while continuing to reduce dependence on the commercial market. The Captive has also expanded coverage across multiple lines to better meet the evolving needs of its clients.

Moreover, the FCCS Risk Management Team has finalized the 2025 Policy Register, which will be released by or before the end of February. This document provides a detailed summary of insurance coverages and limits for System entities for the upcoming year. Specifically written to inform members about policy changes and limits, the Policy Register clarifies coverage specifics, such as the distinction between the previous Property Policy, which covered owned, leased and forced-placed property and the new structure for 2025. The Captive now separates coverage into two policies: Owned Property and Contingent Property (non-owned, leased and forced-placed). Another change is the rebranding of what was once a Multi-Line integrated Single-Limit coverage to FINPRO.

“The Policy Register is an indispensable resource for risk management teams across the System,” says Naomi Baumann, Vice President of Claims & Insurance Services for FCCS, the managing entity of the Captive.

“The Captive can assume more risk because Farm Credit is a premier risk to underwrite—one that we fully understand,” Naomi explains. “Going forward, we are able to base premiums on Farm Credit’s historical losses rather than relying on external risks, like natural disasters.”

With board approval, the Captive has scaled back on the patronage dividends traditionally distributed in order to prioritize growing its assets and supporting its long-term strategy. This shift will ultimately provide better coverage and lower premium payments for Farm Credit organizations.

“The Captive’s board remains committed to delivering the best insurance solution for Farm Credit,” says Brian Clanton, Executive Vice President & Chief Risk Officer of Risk Management & Insurance Services (RMIS) at FCCS. “We are grateful for their unwavering focus and careful consideration of our long-term strategy, which will bring lasting benefits to the System in the years ahead.”

As part of its ongoing commitment to the Captive, the Board continues to welcome feedback and input from System risk professionals to ensure they meet evolving needs.

Farm Credit Captive Insurance Company Board of Governors

Rachel Angress, Executive Vice President & General Counsel, American AgCredit

Jamie Bumgarner, Chief Administrative Officer, AgFirst

Laura Conroy, Senior Vice President and Controller, Agribank

Tim Curran, Chief Risk Officer, CoBank

Jennifer Davis Douglas, Chief Information Officer, AgSouth

Paul Kohls, Chief Administrative Officer & General Counsel, Compeer

Sally Lawson, Chief Financial Officer, Capital Farm Credit

Nisha Rocap, Chief Audit Executive, Farm Credit Bank of Texas

For more information on insurance coverages and risk management services, including scheduling an in-person presentations on risk management strategies and coverages, contact Naomi Baumann, Vice President of Claims & Insurance Services, at 303-721-3263 or via email.