The Canadian Crop Hail Association says despite reduced overall storm activity, more damaging storms resulted in a near-record level of hail insurance payments to farmers in Western Canada in 2021.
With harvest wrapped up across the Prairies, the CCHA says payments totalled more than $322 million — the highest level since 2008. Premiums paid by farmers, meanwhile, added up to $309 million, leaving insurers with an overall loss ratio of 104 per cent (the loss ratio formula is insurance claims paid, plus adjustment expenses, divided by total premiums paid).
The CCHA says Saskatchewan was the hardest hit with an industry loss ratio of 134 per cent compared to 65 per cent in 2020. Alberta followed with a 97 per cent loss ratio, compared to 75 per cent in 2020. Insurers in Manitoba saw a loss ratio of around 26 per cent.
In total, the CCHA says its members insured more than $8 billion in crops in 2021.
The CCHA’s members include private and government insurers, including 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.
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