Proposed changes to the Standard Reinsurance Agreement (SRA) by the United States Department of Agriculture could induce challenging market conditions for the 16 private reinsurers participating in the Multi-Peril Crop Insurance (MPCI) program, a new report from Chicago-based Aon Benfield states.

The current SRA is set to expire after the 2010 crop insurance year, and early proposals drafted by the USDA agency that administers the program, the Risk Management Agency (RMA), indicate significant structural and economic changes terms are being considered for the new SRA.

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