Crop Insurance Today Second Quarter 2021 - 33

vere storm that pummeled the city of Calgary
also caused crop damage; however, early crop
recovery helped lessen industry losses. Claim
activity was up over 26 percent compared to
the five-year average, while claim severity at
more than C$20,000 per claim was higher by
more than 20 percent compared to the average.
Total hail payments for 2020 were reported
at just over C$69 million. The overall reported
loss ratio was 83 percent. Total sums insured
increased for 2020, with rates appearing
to stabilize.
Saskatchewan reported
average loss year
Saskatchewan saw a decrease in storm activity
compared to 2019. A late August storm dampened
what was looking to be a light hail season
for industry insurers. The late storm on harvest
ready crops was the most expensive of the year.
Claim activity was down one percent compared
to the five-year average, while claim severity at
C$13,000 per claim was a decrease of about 15
percent compared to average. Total hail payments
for 2020 were reported at just over C$163
million. The overall reported loss ratio was 65
percent. Total sums insured increased for 2020,
with average rates continuing to soften.
Manitoba records light hail
activity for 2020
Manitoba recorded a decrease in storm activity
compared to 2019. Little storm activity
resulted in positive results for the province.
Claim activity was down 59 percent compared
to the five-year average, while claim severity
at C$9,900 per claim was down 22 percent
compared to the average. Total hail payments
for 2020 were reported at more than C$15
million. The overall reported loss ratio was 29
percent. Total sums insured decreased slightly
for 2020, with average rates decreasing slightly
as well.
Again, we appreciate the contribution of the
Canadian Crop-Hail Association in preparation
for this section of the article.
Conclusion
Upon review, 2020 was yet another exceptional
year, one that called for the crop
insurance industry to respond with the flexibility
and adaptive capacity required to address
multiple disasters within the context of
a global pandemic with effects that were, and
Table 8
Canadian Crop-Hail Results, All Perils
CROP YEAR
20112
2012
2013
2014
2015
2016
2017
2018
2019
2020
PREMIUM
Mil. C$
269
341
344
316
274
302
286
270
264
301
1Loss ratios do not reflect loss adjustment costs
2
Number of claims exceeded value indicated
Data as of November 30, 2020 Source: The Canadian Hail Association
remain, global in scale.
Challenges were many: service delivery
during the pandemic; the implementation of
the Hurricane Insurance Protection Wind Index
endorsement in a year characterized by
record storm landfalls; and working through
the severe crop damage resulting from the
August 10 derecho. In the 2021 crop year, the
pandemic is still with us and surely there will
be no shortages of crises to address. Delivering
risk management is what we do, and the
events of the past year demonstrate that the
crop insurance industry stands ready to respond
when needed.
LOSSES
Mil. C$
164
280
172
249
167
269
97
171
247
193
NUMBER
OF CLAIMS
15,000
21,600
13,321
13,372
13,222
20,325
8,633
11,709
16,367
12,137
LOSS RATIO1
0.61
0.82
0.50
0.79
0.61
0.89
0.34
0.63
0.94
0.64
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