According to the Canadian Crop Hail Association (CCHA), the Canadian 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.
The Association stated that producers who delayed purchasing hail coverage late in 2022 likely had a problem finding it due to the unanticipated 20% increase in demand.
Scott McQueen, CCHA president, commented, “Our member companies worked hard to cover as many producers as possible across the prairie.
“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 totalled more than $375 million for an industry loss ratio of 71%.
Alberta was the hardest hit with an industry loss ratio of 98% compared to 2021’s 97%.
Saskatchewan followed with a 68% loss ratio, compared to 133% in 2021, while Manitoba reported a 43% loss ratio compared to 21% in 2021.
McQueen added, “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.
“We thank our adjusters who responded to unprecedented market demand and worked to ensure farmers received payments quickly after claims.”
The CCHA, which has been serving the crop insurance industry since 1915, is a member-driven organisation that represents the interests of the Canadian Crop Hail managing general agencies and insurance companies.
Source - https://www.reinsurancene.ws