Crop Insurance Today Second Quarter 2021 - 31

losses paid out were $1.2 billion (Table 7).
The industry loss ratio, defined as paid losses
Figure 18
divided by premium written, was significantly
higher in 2020 at 1.14, up from 0.98 in 2019
and 0.95 in 2018. Seven of the past 10 years have
seen loss ratios of 0.90 or more with the record
being the 2014 loss ratio of 1.22.
There were ten storm days that exceeded
$20 million of loss in 2020. The most significant
storm occurred on August 10, when
a derecho hit the Midwest damaging crops,
homes, and businesses in Iowa and Illinois.
The derecho caused nearly $133 million in
Crop-Hail losses with $101.6 million of that
occurring in Iowa alone. Five days during July
each experienced damage of more than $30
million for a combined total of $345 million.
July 8 accounted for the most daily damage
during the month with $114.4 million of crop
damage in Nebraska ($97.6 million), Minnesota
($8.6 million), North Dakota ($4.3
million), and Illinois ($1.3 million), while
on July 9 damage of $83 million was caused
in Nebraska ($49 million), Illinois ($13 million),
Iowa ($11.3 million), Minnesota ($4.2
million), Wisconsin ($2.4 million), and Kansas
(1.6 million). This was followed by a storm
on July 10 with $42 million of total damage
concentrated in Nebraska ($37 million), Iowa
($1.6 million), Montana ($1.55 million), and
South Dakota ($1.4 million). The next day,
July 11, experienced a further $75 million of
widespread loss in Illinois ($23 million), Iowa
($19.4 million), Minnesota ($18 million),
Indiana ($6.7 million), Nebraska ($5.7 million),
and Texas ($1.0 million). And on July
8, a single storm caused almost $47 million in
damage in Nebraska alone and a day later another
storm damaged more than $17 million
2020 Crop-Hail Premium and Loss Ratios
WA
0.38
MT
0.65
OR
2.79
ID
0.47
WY
0.35
NV
0.00
CA
1.18
UT
0.17
CO
0.98
AZ
0.15
NM
0.41
TX
1.17
Loss Ratio
0-50%
50-75%
75-100%
100-125%
125-150%
150-200%
200-418%
Data as of May 12, 2021, all perils.
Source: National Crop Insurance Services Insured Crop Summary and NCIS6b
in crops in that state again. July 6 saw damage
of $30 million with Nebraska ($25.3 million)
and Minnesota ($1.12 million) accounting for
the majority.
In total, the losses from the top 10 storm days
amounted to $570 million, up significantly from
$206 million in 2019, even exceeding the $420
million paid out in 2014. Four states took the
brunt of the major storms, with Nebraska absorbing
$244 million of loss, Iowa $145 million,
Illinois $59 million, and Minnesota $37 million.
Crop-Hail loss ratios by state are shown in
Figure 18. Colors identify states with similar
loss ratios, while shading is used to identify
states with similar premium volume. Crop-Hail
insurance was purchased in 42 states in 2020. Of
these, 13 had loss ratios greater than 1.00 and
are shown in red, gold, and brown on the map.
Alabama had the highest loss ratio of 4.17, followed
closely by Louisiana at 4.01.
The top five states by premium volume-Nebraska,
Iowa, Minnesota, North Dakota, and
Illinois-experienced loss ratios of 1.56, 1.70,
1.24, 0.74, and 1.00, respectively. Overall, 18 of
the 42 states with premium had loss ratios of
0.50 or less, shown in dark green on the map.
Premium
0-1,000,000
1,000,000-10,000,000
10,000,000-25,000,000
25,000,000-100,000,000
100,000,000-240,000,000
ND
0.74
SD
0.75
IA
NE
1.56
KS
0.60
OK
0.52
1.70
IL
1.00
MO
0.48
AR
1.99
LA
4.01
FL
2.78
MS
0.33
IN
0.54
TN
1.50
AL
4.17
GA
0.36
OH
0.25
WV
KY
1.72
VT
MN
1.24
WI
0.96
MI
0.08
NY
0.00
PA
0.71
0.00 VA
0.37
NC
0.51
SC
0.23
NJ
0.00
DE
2.25
MD
0.30
NH
ME
MA
RI
CT
CROPINSURANCE TODAY®
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