December 4, 2017 by The Canadian Press
A report from the Canadian Crop Hail Association says a reduction in potentially damaging storm activity on much of the Prairies this past summer led to one of the lightest hail-claim seasons in eight years.
The 2017 report from the Regina-based association shows there were just over 8,600 claims in Western Canada that generated $96 million in insurance payouts.
The report says there was a decrease in storm frequency from the five-year average, while damage claim frequency was down about 30% for the same period of time.
Manitoba farmers suffered the most losses, followed by Alberta and Saskatchewan.
The association says the lack of moisture was widespread this year with record to near-record dry conditions throughout much of Saskatchewan and parts of Alberta.
The organization also says farmers continue to insure their crops for hail damage at near record levels.
The report said there was more timely precipitation in Manitoba where producers enjoyed good yield and quality, despite dry conditions. The province’s loss ratio of 45.9% was well below 2016’s record loss ratio of 158.9%.
Alberta followed at 33.7%, compared to 83.6% in 2016. Saskatchewan reported a 30-per-cent loss ratio compared to 73% in 2016.
The report said producer premiums totalled just over $286 million for an industry loss ratio of 33.8%.
A dry spring combined with 2016 unharvested acres and some continued industry rate declines resulted in a five-per-cent decrease in producer-paid premiums this year.
The Canadian Crop Hail Association is a member-driven organization that represents the interests of the Canadian crop hail managing general agencies and insurance companies. It’s been serving the crop insurance industry since 1915.
Association member companies write crop-hail insurance products totalling more than $250 million in premiums, and liability totalling about $6 billion.
This story was originally published by Canadian Insurance Top Broker.