https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AStandard_reinsurance_agreement_%28SRA%29Definition:Standard reinsurance agreement (SRA) - Revision history2026-06-13T22:19:25ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Standard_reinsurance_agreement_(SRA)&diff=11885&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-12T00:55:08Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📋 '''Standard reinsurance agreement (SRA)''' is the contractual framework established by the [[Definition:Federal Crop Insurance Corporation (FCIC) | Federal Crop Insurance Corporation (FCIC)]] that governs the relationship between the federal government and the private [[Definition:Insurance carrier | insurance companies]] that sell and service [[Definition:Federal crop insurance | federal crop insurance]] policies. Unlike a typical [[Definition:Reinsurance treaty | reinsurance treaty]] negotiated between two commercial parties, the SRA is a government-prescribed agreement that dictates how [[Definition:Premium | premiums]], [[Definition:Subsidy | subsidies]], [[Definition:Administrative and operating expense reimbursement (A&O) | administrative and operating expense reimbursements]], and [[Definition:Underwriting gain | underwriting gains]] or losses are shared between the [[Definition:Approved insurance provider (AIP) | approved insurance providers (AIPs)]] and the FCIC.<br />
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⚙️ Under the SRA, each approved insurer cedes a defined portion of its crop insurance [[Definition:Book of business | book of business]] to the federal government through one of several prescribed [[Definition:Reinsurance fund | reinsurance funds]], each carrying different risk-sharing characteristics. Insurers strategically assign policies to these funds based on their assessment of the risk profile and their desired retention level. The government absorbs a substantial share of [[Definition:Catastrophe loss | catastrophic losses]], while insurers retain more of the gain or loss on business they place in higher-retention funds. The agreement also spells out the [[Definition:Administrative and operating expense reimbursement (A&O) | A&O reimbursement]] rates the government pays to compensate insurers for the cost of delivering the program to farmers.<br />
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🌾 Because the SRA is renegotiated periodically — typically in conjunction with the [[Definition:Farm Bill | Farm Bill]] cycle — its terms directly influence the profitability and strategic calculus of every private insurer participating in the federal crop insurance program. Shifts in the reinsurance fund structure, expense reimbursements, or loss-sharing percentages can make the program more or less attractive to [[Definition:Approved insurance provider (AIP) | AIPs]], potentially affecting the availability of crop insurance in rural markets. The SRA thus occupies a unique position in the insurance landscape: it is simultaneously a [[Definition:Reinsurance | reinsurance]] contract, a public-policy instrument, and a regulatory framework, blending government oversight with private-sector delivery in a way that has no close parallel in other [[Definition:Line of business | lines of business]].<br />
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'''Related concepts:'''<br />
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* [[Definition:Federal crop insurance]]<br />
* [[Definition:Federal Crop Insurance Corporation (FCIC)]]<br />
* [[Definition:Approved insurance provider (AIP)]]<br />
* [[Definition:Reinsurance]]<br />
* [[Definition:Catastrophe loss]]<br />
* [[Definition:Underwriting gain]]<br />
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