Payments Exceeds Premiums for Crop Hail Insurance Companies

The Canadian Crop Hail Association (CCHA) reports insurance payments to Prairie producers will total more than $322 million compared to the $309 million collected in premiums.

This year’s damage total was the highest since 2008.

“What looked to be an average storm season at the start resulted in record high claim payments,” Scott McQueen, CCHA president. “The industry’s claims payments were up 78 percent compared to the five-year average.”

Saskatchewan was the hardest hit with an industry loss ratio of 134 percent—much higher than the 65 percent last year. Alberta recorded a loss ratio of 97 percent, while Manitoba was the saving grace for crop hail insurance companies with a loss ratio of only 26 percent.

Farmers in many townships hit by hail this year can anticipate an increase in premiums in 2022.

{CJWW}

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