Crop Insurance Today Second Quarter 2020 - 27

Nebraska, Iowa, North Dakota, Minnesota,
and Illinois - had loss ratios of 1.00, 0.54,
1.32, 1.50, and 0.57, respectively. Overall, 20
of the 42 states with premium had loss ratios
of 0.50 or less, shown in light green on the
map. Five states, shown in green, had loss ratios between 0.50 and 0.75, and another five
states, shown in olive green, had loss ratios
falling between 0.75 and 1.00.
[Information sources for this section include:
NCIS' Insured Crop Summary and claim files.]

Fig. 20

2019 Crop-Hail Premium and Loss Ratios
All Crop, Perils, Plans Combined

NJ 0.00
DE 0.08
MD 0.00

Canadian Crop-Hail
Experience
Crop-Hail business in Canada is primarily written in the prairie provinces of Alberta,
Manitoba, and Saskatchewan. Denoting Canadian dollars with C$, Table 8 presents the totals
by year. Overall premiums for Canada declined
from C$297 million in 2018 to C$264 million in
2019, even with a slight uptick in the number of
policies sold. Losses paid to farmers were significantly higher in 2019 at C$247 million compared
to C$185 million in 2018. The number of claims
filed in 2019 increased to 16,367 from 11,709 in
the prior year, resulting in the average claim size
increasing to C$15,101, up from C$14,630 in
2018. Overall, the loss ratio for the three Canadian provinces combined was 0.94, significantly
higher than the long-term average of 0.67 for the
time period 2010-2019.
All three provinces had decreases in premiums in 2019: Manitoba saw a slight decrease
down to C$53 million in 2019 compared to C$57
million in 2018; Alberta decreased from C$81
million in 2018 to C$71 million in 2019; and
Saskatchewan fell from C$159 million in 2018 to
C$140 million in 2019. Policy counts actually increased in the provinces of Alberta and Manitoba
while Saskatchewan had a slight decrease.

LR

Premium

(0.00 - .50)

(0 - 1,000,000)

(.50 - .75)
(.75 - 1.00)

(1,000,000 - 10,000,000)

(1.00 - 1.25)

(10,000,000 - 25,000,000)

(1.25 - 1.50)

(25,000,000 - 100,000,000)

(1.50 - 7.00)

(100,000,000 - 200,000,000)

Data as of April 7, 2020
Source: National Crop Insurance Services Insured Crop Summary and NCIS6b

Table 8

Canadian Crop-Hail Results, All Perils

CROP YEAR

PREMIUM
Mil. C$

LOSSES
Mil. C$

NUMBER
OF CLAIMS

LOSS RATIO1

20102
20112
2012
2013
2014
2015
2016
2017
2018
2019

263
269
341
344
316
274
302
286
270
264

155
164
280
172
249
167
269
97
171
247

16,000
15,000
21,600
13,321
13,372
13,222
20,325
8,633
11,709
16,367

0.59
0.61
0.82
0.50
0.79
0.61
0.89
0.34
0.63
0.94

Loss ratios do not reflect loss adjustment costs
Number of claims exceeded value indicated
Data as of January 7, 2020 Source: The Canadian Hail Association
1
2

Total payouts for the year in Manitoba were
C$49 million, slightly higher than the C$47 paid
in 2018 and the loss ratio increased to 0.93 from
0.81 a year ago. Losses in Saskatchewan increased
significantly in 2019 to C$135 million, up from
C$99 million in 2018, resulting in a deterioration
in the loss ratio from 0.65 to 0.96. Losses were
also high in Alberta, up C$30 million to C$64
million this year, which caused the loss ratio to
increase from 0.42 to 0.90.
[The information source for this section was the
Canadian Crop Hail Association.]

Conclusion

The 2019 crop year brought RMA, AIPs,
and farmers an unprecedented number of agronomic and economic challenges on various

fronts of the planting and harvest season, but
the Federal crop insurance program and its
private-sector delivery partners successfully
met those challenges head on. Combined with
ongoing trade issues, low commodity prices,
and the nation's challenges stemming from the
coronavirus, RMA, AIPs and producers will
continue to confront new and complex issues
that emerge in agriculture. Along with assistance and support from NCIS, all program
partners will work together so that the Federal
crop insurance program continues its mission
of promoting the nation's welfare by improving
the economic stability of agriculture through
a sound, efficient, and effective system of
crop insurance.

CROPINSURANCE TODAY®

27
Crop Insurance Today Second Quarter 2020

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