Crop Insurance Today May 2015 - 21

Figure 18. 2014 Crop Hail Premium and Loss Ratios
All Crops, Perls, Plans Combined, as of March 18, 2015

Total Loss Ratio
(0-0.25)
(0.25-0.5)
(0.5-0.75)
(0.75-1)
(1-1.25)
(1.25-3)
(3-4)
State Labels:
-ST Name
-LR
NCIS 2000-2007

PREM
(0-1,000,000)
(1,000,000-10,000,000)
(10,000,000-50,000,000)
(50,000,000-100,000,000)
(100,000,000-200,000,000)

its history in 2014 (influenced by extensive
hail as well as losses in production plans), and
2014 became only the third year since 1948 in
which the countrywide loss ratio, defined as
paid losses divided by premium written, exceeded 1.00. In 2012 and 2013, the program
loss ratio reverted back to below 1.00 and is
estimated at 0.74 and 0.68, respectively. The
loss ratio for production plans was 0.88 in
2012, 0.85 in 2013 and 1.78 in 2014, with levels exceeding each year's overall loss ratio.
Large storms contributed importantly to
losses for the year. In terms of statewide losses
from storms on a particular day (for hail and
wind perils), Nebraska took the top spot with
$144.9 million on June 3. That was followed
by Nebraska with $63.3 million on June 14
and Iowa with $43.1 million losses on June
30. The losses from the top ten storm days at a
state level amounted to $420.2 million, which
is much more severe than those in the previous six years (2013 at $158.0 million, 2012 at
$120.2 million, 2011 at $259.9 million, 2010
at $78.2 million, 2009 at $174.2 million and
2008 at $89.2 million). Regarding county level

losses in 2014 from major storm events on a
particular day (also for hail and wind perils),
Holt County in Nebraska took the top spot,
which occurred on June 3, resulting in $20.8
million paid out to farmers. The second highest one-day storm in 2014 occurred on July
23 in Whitman County, Washington, resulting in $15.4 million paid out to farmers. The
third highest one-day storm in 2014 occurred
on June 3 in Cuming County, Nebraska, resulting in $11.7 million paid out to farmers.
The next two largest county losses occurred

in Minnesota and Iowa. The total of the top
five county losses amounted to $70.8 million,
which was above those in 2013 by 83 percent,
in 2012 by 189 percent, in 2011 by 35 percent
and in 2010 by 252 percent. The next five largest county losses all occurred in Nebraska on
either June 3 or June 14. Of the top 50 most
damaging storms at the county level, 36 occurred in the month of June, eight in July, two
in August, two in September, one in May and
one in October.
Crop-hail loss ratios by state are shown in

Table 8. Canadian Crop-Hail Results, All Perils

CROP YEAR

PREMIUM

LOSSES

Mil. C$

2008
2009
20102
20112
2012
2013
2014

289
262
263
269
341
344
317

341
76
155
164
280
172
265

NUMBER OF CLAIMS

LOSS RATIO1

29,000
4,075
16,000
15,000
21,600
13,321
13,741

1.18
0.29
0.59
0.61
0.82
0.50
0.84

Loss ratios do not reflect loss adjustment costs.
2
Number of claims exceeded value indicated.
Source: The Hail Report, a publication sponsored by The Canadian Hail Association, which represents companies that sell crop-hail
insurance in Western Canadaincluding subsequent updates.
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Crop Insurance Today May 2015

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