This year was below the five-year average for hail claims for Prairie farmers but saw higher-than-average claim payments.
Overall, the industry will record a near break-even type of year. Claims produced insurance payouts of over $192 million on more than 12,100 claims in Western Canada. Producer premiums totalled just over $300 million for an industry loss ratio of 64 per cent. Industry premiums have decreased an average of 15 per cent over the past five years.
The number of storm days in some parts of the Prairies were below average this summer, but storm severity made up for the decrease.
Hardest hit was Alberta with an industry loss ratio of 83 per cent, which is similar to 2019. Saskatchewan followed with a 65 per cent loss ratio (down from 95 per cent from a year earlier) while Manitoba saw limited hail activity posting a 29 per cent loss ratio after suffering a 93 per cent loss ratio in 2019.
Alberta’s storm activity was similar to 2019. An early severe storm that pummelled the city of Calgary also caused crop damage. However, early crop recovery helped lessen industry losses. Claim activity was up over 26 per cent compared to the five-year average, while claim severity (at more than $20,000 per claim) was higher by more than 20 per cent compared to the average. Total hail payments for 2020 were reported at just over $69 million. Total sums insured increased for 2020, with rates appearing to stabilize.
In 2019, Canadian Crop Hail Association member companies paid $242 million on 16,200 claims.