The drought could cause crop insurers - including Ace (ACE), QBE (QBE) and Wells Fargo (WFC) -...

|About: ACE Limited (ACE)|By:, SA News Editor

The drought could cause crop insurers - including Ace (ACE), QBE (QBE) and Wells Fargo (WFC) - to suffer their first underwriting losses in ten years. However, with the government providing subsidies and reinsurance, taxpayers may have to foot 50%-80% of the bill. The severity of the drought makes it tempting for farmers to give up on the crops and claim the insurance rather than try to save their products.