Why is there no claim window for LPI-Hog?

January 19, 2021

There is no claim window for hogs for two reasons: First, because of the continuous production flow associated with pigs, it is acceptable to offer monthly coverage and still provide effective protection against market price risk. Second, the hog market is more volatile by nature and thus has higher premiums associated with coverage. Averaging the daily prices into one monthly settlement index lowered those premiums on the hog coverage. This program feature was developed in consultation with industry.