Saskatchewan Hail Claims Hit $76M

SASKATOON - Nov 10/05 - SNS -- Hail claims in Saskatchewan this year ended that season at CDN $76 million on 13,000 crop loss claims, report members companies of the Canadian Crop Hail Association.

While claim numbers were up significantly from 2004, they were close to the five-year average.

However, the average payment per claim was much higher than previous years at over $5,800. The high payment levels are attributed to the severity of the storms as well as a higher level of insurance per customer.

"When you total the 2005 liability (how much was at risk) from all the companies offering hail insurance for crops in the province, you come up with a staggering $2.4 billion dollars," says Rob Goeres, the chair of the Canadian Crop Hail Association. "This is a safety net funded entirely through producer premiums."

Loss ratios vary widely from one company to another. Some companies had relatively low losses and will enjoy a surplus for 2005 operations in Saskatchewan. Other companies have expenses that exceed revenues. The main variable is the geographic distribution of customers as compared to the areas that received hailstorms.