Saskatchewan Hail Claims Top $101 Million

SASKATOON Oct 19/06 - SNS -- Hail claims in Saskatchewan topped CDN $101 million on 14,342 claims this year, making it the worst year in a decade, reports the Canadian Crop Hail Association.

The hail insurance premiums paid by producers almost exactly matched the losses. The loss expressed as a percentage of the premium is 99.7%.

Hail insurance companies have significant costs for sales commissions, administration and the adjustment of claims. The adjustment cost alone is typically more than 4% of premiums. While results vary from one company to another, overall the companies selling hail insurance in the province will be facing significant losses for 2006.

"August was really the killer," notes Murray Otterson, who represents one of the member companies of the Canadian Crop Hail Association. "Typically, July is the heaviest month for hail losses, but this year the biggest losses by far were in August."

Near the end of July, hail claims totaled fewer than 2,500 and were running at less than half the typical pace. August was an extremely busy month for claims with a couple of late storms also occurring in September.

It was not uncommon for an area to be hit with more than one storm through the course of the season. Some of this year's heaviest losses occurred near the communities of Torquay, Ituna, Eatonia, Kindersley, Herschel and Unity.