The crop hail industry provided a record-setting $10 billion in coverage as producers purchased more insurance in the wake of increasing input costs, inflation and strong crop prices, according to the Canadian Crop Hail Association.
Producers who waited to purchase hail coverage late in 2022 likely had a problem finding it due to the unanticipated 20-percent increase in demand.
“Our member companies worked hard to cover as many producers as possible across the prairie” said Scott McQueen, CCHA president. “We encourage producers to plan for their 2023 insurance needs early and contact a CCHA company soon so we may help with the process.”
Insurance payments to prairie producers will total more than $265 million. Producer premiums totaled more than $375 million for an industry loss ratio of 71 percent.
Alberta was the hardest hit with an industry loss ratio of 98 percent compared to 2021’s 97 percent. Saskatchewan followed with a 68 percent loss ratio, compared to 133 percent in 2021. Manitoba reported a 43 percent loss ratio compared to 21 percent in 2021.
“We are proud to have helped prairie farmers once again weather the impacts of Mother Nature and have the resources they will need next year to grow the food we rely on,” McQueen said. “We thank our adjusters who responded to unprecedented market demand and worked to ensure farmers received payments quickly after claims.”
CCHA members have completed final hail damage claims.