The record liability also highlighted the exposure that insurers and reinsurers carry to US weather and commodity risk, even with the federal backstop in place. Recent years have produced highly variable loss ratios as drought, severe convective storms and localized flooding have affected major growing regions. That volatility, combined with the 2025 expansion in coverage, is expected to feed directly into pricing discussions, reinsurance structures and aggregate management for the 2026 crop year and beyond.
