Extremely damaging storms resulted in near-record claims for farmers across Western Canada in 2021 despite a decrease in overall storm activity, according to the Canadian Crop Hail Association.
“What looked to be an average storm season at the start resulted in record high claim payments,” said Scott McQueen, CCHA president. “The industry’s claims payments were up 78 percent compared to the 5-year average.”
Insurance payments to prairie producers will total more than $322 million – an amount not seen since 2008. Producer premiums totaled more than $309 million for an industry loss ratio of 104 percent.
CCHA insured more than $8 billion in crops in 2021.
Saskatchewan was the hardest hit with an industry loss ratio of 134 percent compared to 65 percent in 2020. Alberta followed with a 97 percent loss ratio, compared to 75 percent in 2020. Manitoba was the only province to record a positive year with a loss ratio of more than 26 percent.
“We are proud to have helped prairie farmers weather an extremely tough season and have the resources they will need to plant again next year to grow the food we rely on,” McQueen said. “We also thank our adjusters who worked tirelessly to stay ahead of the combines and ensure farmers received much-needed relief in a timely fashion.”
CCHA members have completed final hail damage claims.
It’s never too early to start planning insurance coverage for next season, McQueen said.
“We are all looking forward to what we hope will be a better season next year. CCHA member companies are ready to help growers find the insurance products they need to manage weather risks and protect the investments they make in their crops,” he said. “I encourage growers to contact a CCHA member company today so we can start planning for 2022.”
For more and past reports: cropinsuranceincanada.org
The Canadian Crop Hail Association (CCHA) has been serving the crop insurance industry since 1915. It is a member-driven organization that represents the interests of the Canadian Crop Hail managing general agencies and insurance companies. These private and government organizations together provide a risk management tool to the farmers across Canada. Members are Additional Municipal Hail Ltd. (Saskatchewan), AG Direct Hail Insurance Ltd, Agriculture Financial Services Corporation (Alberta), Canadian Hail Agencies Inc, Co-operative Hail Insurance Company, Manitoba Agricultural Services Corporation Rain and Hail Insurance Service Ltd., New Brunswick Agricultural Insurance Commission and Palliser Insurance Company Ltd.