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Hail payouts total $280 million – final report for 2012

canadian-crop-hail-association — Mon, 29 Oct 2012 20:38:00 +0000

Based on preliminary estimates, payouts to Prairie farmers for 2012 crop hail claims total roughly $280 million on 21,600 losses. A total of nearly $341 million was collected from producer premiums for an industry-wide loss ratio of just over 82 per cent.

Disease and wind damage made it challenging for adjusters to determine the hail damage on many canola fields this year. Losses are considerably higher than 2011when approximately $164 million was paid on 15,000 losses. The 2011 loss ratio was just over 61 per cent.

Payouts per loss have been rising over the years as farms grow larger. As well, there are now higher per-acre limits for insurance coverage. Loss per claim is also affected by the severity and timing of storms. The average loss per claim in 2012 is $12,963, about $2,000 more than last year.

The lowest losses in recent memory were in 2009 at only $76 million. The loss ratio that year was roughly 29 per cent. Payouts for 2008 totalled a record high $341 million and the loss ratio was 118 per cent. Loss statistics do not include the cost of adjusting claims.

Alberta hit hard

Alberta farmers are receiving nearly $90 million in hail claim payouts on a total of 5,500 losses. This is for the hail insurance claims over and above crop insurance endorsements. Just over $79 million was collected in premiums, so the loss ratio is 113 per cent. While results vary from one company to another, overall more money was paid to producers than was received in premiums.

By comparison, Alberta farmers received $36 million in hail claim payouts for 2011 and $38 million in 2010. In both years, there were about 2,500 losses. At 5,500, the number of losses in Alberta this year is a record high. However, 2008 had higher total payments than this year.

Saskatchewan losses increase

The compilation of results for Saskatchewan shows payments of $159 million on 13,500 losses. Producer premiums were about $212 million, so the loss ratio is 75 per cent.

Last year, there was a total of roughly 11,800 losses and total payouts of nearly $121 million. Producer premiums in 2011 topped $168 million generating a loss ratio of about 72 per cent.

For 2009, payouts in Saskatchewan were a modern-times record low of $23.4 million with a very low loss ratio of 13.6 percent. In 2008, payouts were a record high $228 million and the loss ratio was 129 per cent.

For 2012, June losses were about three times higher than average. July was about normal. August was average for numbers, but the severity was greater than normal. For September, the number of losses was similar to previous years, but the loss per claim was very high. Overall, the number of claims was a bit higher than average and the cost per claim was higher than average.

Higher losses in Manitoba

Manitoba recorded about 2,500 losses with payments to producers totaling over $31 million. Producer premiums were nearly $49 million generating a loss ratio of 64.5 per cent.

In 2011, there were fewer than 1,100 losses with payouts of approximately $6.9 million. With over $31 million collected in producer premiums, the loss ratio was only 22 per cent.

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Hail continues almost every night in Saskatchewan

canadian-crop-hail-association — Fri, 03 Aug 2012 16:11:00 +0000

Important information for claimants

Producers with claims are advised to use fax or email (or for some companies the phone) to get claim information to their insurance company or companies. In some cases, regular mail can take a week and there are cases where adjusters may be finishing in an area before the claim is received and processed. Producers should not follow up with regular mail as it only adds to the paper burden.

Harvest is underway in some regions. It’s important for producers to leave appropriate check strips or swathes if they need to harvest before an adjuster arrives. Producers should call their insurance company for information on what is required.

The progress of adjusters varies from one company to the next and one province to the next. Producers are asked to be patient as companies work their way through an above normal number of claims.

Storms continue in Saskatchewan

Nearly every night over the past two weeks, there has been hail somewhere in Saskatchewan. As of mid-week, the claim total was over 7,600 and rising. This is up from a total of less than 5,000 two weeks ago.

The level of claims is well ahead of last year and also ahead of the five-year average. To date, the storm with the highest number of claims affecting the largest number of acres was June 26, followed by July 3 and then July 21. Initial indications point to a large number of claims from a storm August 1 in the Lafleche region.

Storm dates and locations include:

July 18 – Humboldt, Annaheim, Quill Lake, Melfort, Naicam, Kelvington, Wadena, Preeceville
July 19 – Imperial, Kenaston, Yorkton
July 21 – Crane Valley, Shellbrook, Ogema, Benson, Midale, Weyburn, Choiceland, Ituna, Foam Lake
July 23 – Swift Current, Flaxcombe, Marengo, Abbey, Kerrobert, Eston, Smiley
July 24 – Assiniboia, LeRoy, Dafoe
July 25 – Lake Lenore, Watrous, Coleville, Denzil, Humboldt, Kindersley, Luseland
July 28 – Flaxcombe, Kenaston, Coleville, Watrous, Weyburn, Simpson, Imperial

With crops reaching maturity, storms at this time of year typically cause a great deal of damage.

Sizable jump in Alberta claims

Over the past two weeks, hailstorms have been spread throughout Alberta. The claim total has grown by more than a thousand to sit at well over 2,500. This number does not include crop insurance endorsements.

July 23 had numerous hailstorms throughout central Alberta with a storm tracking west of the QE 2 Highway from Olds northward. On July 26, the Cardston and Lethbridge areas receive golf ball or larger size hail causing extensive damage. July 27 had a similar storm with very large hail from Vulcan to Vauxhall. The same day hail damage was reported in the Airdrie, Taber and Foremost areas.

July 28 saw a storm track from west of Ponoka to Camrose and east with very heavy damage in the middle of the storm. On July 30, the Tofield area was hit very hard with large hail. Thorhild received hail damage as well. There were many smaller storms spread throughout the same time period. Tornado warnings accompanied many of the storms.

Hail activity slows in Manitoba

As of mid-week, the hail claim total for Manitoba was just over 2,300. Two weeks ago, nearly 1,800 had been filed.

Most of the new claims are the result of storms on two dates. On July 19, some fields in the Pilot Mound and Snowflake areas received hail for the second time this year. Additionally, claims were registered from areas near Manitou, Darlingford and Altona.

A larger number of claims were registered as a result of scattered storms on July 29. These claims are coming in from all over the province. Affected areas include Cowan, Sclater, Neepawa, Arden, Sanford, Starbuck, Beausejour, Morris, Arnaud, and Emerson.

The Canadian Crop Hail Association represents the companies that sell crop hail insurance to producers in Western Canada. The Hail Report is released every second Friday during the hail season to provide information on storms, claims and related issues. The report is compiled by Kevin Hursh of Hursh Consulting & Communications in Saskatoon.

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Hail claims pile up in Manitoba and Saskatchewan

canadian-crop-hail-association — Mon, 23 Jul 2012 18:58:00 +0000

There are already more crop hail claims in Manitoba than were filed for the entire 2011 growing season. At nearly 1,800, Manitoba claim numbers have surpassed the number filed to date in Alberta, despite a much smaller cropped acreage in Manitoba.

The majority of the claims come from a storm system that followed the U.S. border on July 3 and 4 damaging crops near Pipestone, Reston, Sinclair, Deloraine, Killarney, Crystal City, and Snowflake. Damage is reported as being extremely severe in some locations.

Spotty hail was also reported on July 11 between Swan River and Minitonas as well as on July 12 and 13 in the Purves, Neepawa, and Carberry areas.

Claims continue to pile up in Saskatchewan

The claim total for Saskatchewan is approaching 5,000. That’s more than double the number that had been received two weeks ago. Claims for Saskatchewan are running ahead of normal for this time of year.

Major storm dates and locations include:

July 1 – Mortlach
July 2 – Eston, Glidden, Eatonia
July 3 – Lafleche, Caronport, Lumsden, Elbow, Bethune, Simpson, Lanigan, LeRoy, Quill Lake, Rosthern
July 4 – Gainsborough, Carievale, Storthoaks, Alida
July 6 – Spring Valley, Mossbank, Assiniboia, Crane Valley, Chamberlain
July 10 and 11 – Cutknife, Battleford, Delmas, Handel, Landis, Unity, Wilkie
July 12 – Eatonia, Flaxcombe, Kindersley, Rosetown, Leader, Vonda, Oxbow
July 13 – Eston

The Eston area has received multiple storms. In most cases, if the first claim has not been adjusted, the adjuster will inspect the cumulative damage from both (or more) storms all at once.

In all three provinces, weather and wet field conditions are causing delays in adjusting claims. Growers are asked for their patience.

Claims slightly above average in Alberta

A total of just over 1,500 claims have been filed in Alberta, more than double the number from two weeks ago. This number represents straight hail claims only and does not include claims filed under crop insurance endorsements.

Major storm dates and locations include:
July 1 – Drumheller, Red Deer, Three Hills, Standard, Beiseker, Mossleigh, Trochu
July 3 – Red Deer, Wetaskiwin, Olds, Camrose
July 5 – Strathmore, Stettler, Lacombe, Standard, Milo
July 9 – Westock
July 12 – Consort, Oyen, Provost, Spruce Grove

Recent storms have had significant rainfall accompanying the hail ranging in amounts from two to five inches.

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The Hail Report

canadian-crop-hail-association — Fri, 15 Jun 2012 13:43:00 +0000

Although it’s early in the growing season, hailstorms have already generated claims ineach Prairie province.

The most significant storm to date in Alberta was on June 5 when hail was accompanied by a tornado in the southern part of the province. The areas affected were Taber, Wrentham, and Warner to Enchant. Seeding was early in this region so the hail caused damage to a number of specialty crops as well as conventional ones.

Southeastern Saskatchewan had a storm on May 22 that damaged winter wheat and some pulse crops. Most of the claims were around Oungre. On June 8 and 9, a few claims were filed as a result of storm activity in south central and southeastern Saskatchewan.

In Manitoba, claims were generated near Holland on May 27. There were also claims in early June in the southeast region of the province near Emerson, St. Jean Baptiste and Ste. Agathe. Claims are expected in parts of Alberta and Saskatchewan from hailstorms that occurred June 13.

Producer urged to make hail insurance decisions early

Although a few producers are still trying to get the last of their crops seeded and many others are busy with in-crop weed control, there are advantages to getting hail insurance in place as early as possible:

-It costs the same amount to insure early and the coverage is in effect longer.

-Early storms before insurance is purchased can limit the opportunity to subsequently purchase hail insurance coverage. Every year there are some producers who have hail storms in advance of getting coverage.

-Many companies have liability limits for specific townships, meaning they will only accept a certain amount of business. While industry wide capacity is not an issue, buying early means a wider selection of companies to choose from and therefore a better chance at the lowest insurance costs.

-Producers can continue to add hail insurance as the season progresses.

With this year’s reduction in unseeded acres, combined with solid commodity prices and the high cost of growing a crop, hail insurance uptake is expected to be strong. Producers can contact their local agents to discuss the various coverage options.

The Canadian Crop Hail Association represents the companies that sell crop hail insurance to producers in Western Canada. Starting on July 6 they will release a report every second Friday during the hail season to provide information on storms, claims and related issues.

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Hail claims well below normal

canadian-crop-hail-association — Fri, 22 Jul 2011 13:46:00 +0000

In its biweekly report, the Canadian Crop Hail Association says that despite some well-publicized storms, the number of hail claims filed by Prairie farmers is well below average for this time of year.

As of mid-week, the member companies reported a total of roughly 2,650 claims in Saskatchewan, 930 claims in Alberta and 500 claims in Manitoba.

No new hail activity in Manitoba

In the two weeks since the last report, there is no appreciable hail activity to report in Manitoba. However, claims have continued to be filed from storms on July 4. That storm date accounts for more than 85 per cent of the 500 claims filed.

Many of the claims have been cancelled as damage was less than 5 per cent. The hardest hit areas are east of Altona, St. Jean Baptiste, and Lowe Farm. In many cases, claims have been deferred and will be adjusted over the next couple of weeks because the crop was at such an early stage of development.

Alberta claims from many different dates

Alberta claims have continued to flow in from storm activity on July 3. So far, that is the biggest date for claims. Areas affected include Three Hills east, north of Drumheller to Alix, Forestburg, Strome, Vermilion and St. Paul.

July 6 had hail damage from Drayton Valley to Hay Lakes with medium damage occurring.

July 7 saw a storm, accompanied with a tornado, touching down in some areas. From east of Sundre to Red Deer heavy hail damage occurred. Barrhead also had a storm that evening.

A July 11 storm hit Central and Southern Alberta with claims spread throughout. Lacombe and Eckville had flooding with heavy downpours and some hail accompanying these storms.

July 13 saw storms from High River to Cardston. Damage was variable with Cardston having golf ball sized hail.

Storms on July 14, 15 and 17 were spread throughout the province with small claim numbers being filed.

July 18 and 19 claims are still being filed from southwest of Red Deer and Millet to Camrose.

At 930, hail claims in Alberta are running behind last year and below average for this time of year. This number represents straight hail claims only and does not include claims filed under crop insurance endorsements.

Central Saskatchewan hit hardest

Over the last two weeks, there has been storm activity somewhere in Saskatchewan on almost every date. However, the total of roughly 1,650 claims is below average for this point in the growing season.

A storm on July 12 has been the largest to date in Saskatchewan accounting for nearly one-quarter of the 1,650 claims. That storm hit central Saskatchewan including Delisle, Perdue, Kindersley, Outlook, Rosetown, Dinsmore, Elrose, Milden and Wiseton.

July 7, 8 and 9 also saw a lot of crop damage with claims from locations such as Wilkie, Plenty, Dodsland, Landis, Handel, Watrous, Kenaston, Cudworth, Raymore, Duval, Davidson and Holdfast.

Many claims have been deferred until the crop is headed / podded so that losses can more accurately be determined.

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Hail claims rise: insurers ask for claims by fax or online

canadian-crop-hail-association — Fri, 30 Jul 2010 14:26:00 +0000

Since the last report two weeks ago, the number of crop hail claims has increased significantly in all three Prairie Provinces. Claim numbers are above average in Saskatchewan, somewhat below average for this date in Alberta, and well below normal in Manitoba.

Adjusters report continuing problems in accessing some fields due to wet conditions. When adjusters establish appointments with producers, it’s useful for the adjuster to know whether the roads and fields are too wet for travel.

There can be significant delays when producers send in their claims by regular mail. In some instances adjusters have been gone from an area by the time these claims arrive. All the companies accept claims by fax. Some accept claims online. These methods are preferred.

Alberta

Over the past two weeks, claims in Alberta have more than doubled to around 1,350. This number represents straight hail claims only and does not include claims filed under crop insurance endorsements.

While still slightly below average, claim numbers are well ahead of the 600 filed by this date in 2009. In the heavy claim year of 2008, 3,450 claims had been filed by this time.

Since the last report, claims have continued to come from the storm on July 12 that hit an area including Standard, Strathmore, Rockyford, Hussar and Langdon. There are also claims from that date from around Vermilion, Dewberry and Clandonald as well as a number of other communities.

July 16 was another significant storm date. Among other areas, Standard and Hussar were hit again.

Hail occurred on many other dates over the past two weeks, affecting producers in a number of different regions. July 25 saw significant storm activity in the Olds-Didsbury area and the Rosalind-Daysland area where golf ball-sized hall was reported.

Saskatchewan

The number of Saskatchewan claims has reached nearly 5,000. This is up from about 3,200 two weeks ago. Claim numbers are above average for this date and well above the approximately 2,000 claims filed at this time last year. In 2008, a record year for claims, the total at this time was 10,500.

An area around Leader on the west side of the province was hit July 16. The east side of the province was hit on the evening of July 16 and in the early morning of July 17 in areas that included Raymore, Foam Lake, Melville, Churchbridge, Yorkton and Esterhazy.

On July 20, a storm was concentrated in the southeast corner of the province affecting Oungre, Torquay, Estevan and Gainsborough.

Claims are still coming in from a storm July 25 that hit areas on the east side of the province including Humboldt, LeRoy and Naicam as well as Nipawin, Gronlid, Weirdale and Arborfield.

The July 22 storm that flooded the city of North Battleford resulted in relatively few hail claims on crops.

Manitoba

Hail claims in Manitoba total fewer than 700. While this is up by about 300 claims as compared to two weeks ago, claim activity remains well below normal. Last year at this time, there were about 800 claims and in 2008 there were 1,600 claims by this time.

Claims have continued to arrive from the storm July 13 that went from south of Darlingford to south of Roland.

On July 26, there were three separate storms. One was south of Carman in a line from Rosebank to Roland. Another started west of Starbuck and travelled east to La Salle. A third hit just east of Winnipeg in the Tyndall, Oakbank and Dugald areas. A tornado also touched down just outside of Oakbank. Reports indicate golf ball- to hardball-size hail in some locations.

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Dramatic increase in hail claims

canadian-crop-hail-association — Mon, 19 Jul 2010 18:10:00 +0000

(July 16) Over the past two weeks, the number of crop hail claims filed by Prairie farmers has increased dramatically, particularly in Alberta and Saskatchewan.

In many regions, hail adjusters are having difficulty accessing fields due to extremely wet conditions. Producers can assist adjusters by advising when all the damaged fields can be attended. In some cases, producers are providing ATVs or four-wheel drive trucks so that adjusters can see all the parts of damaged fields and this assistance is appreciated.

Alberta

Until the last two weeks, storm activity in Alberta had been light. Claims have now increased from fewer than 100 to over 600. Claims are still somewhat below average, but that could change quickly.

The greatest number of claims to date is coming from a storm July 12 that saw golf-ball size hail hit Drumheller South, Strathmore, Standard, Rockyford, Hussar, and Landon. The threat of tornadoes accompanied this storm and one was believed to have touched down near Rockyford.

Earlier storms hit many other areas of Alberta, but caused less crop damage.

Saskatchewan

As of mid-week, Saskatchewan claims to all the member companies of the Canadian Crop Hail Association totaled more than 3,200, up from only about 650 claims two weeks ago.

Claims are well above average for this point in the season. Last year at this time about 1,650 claims had been filed.

Over the past two weeks, there have been new claims filed for storms on nearly every day. There were big storms July 1 and July 2.

The July 1 storms hit south of Swift Current, an area in the southeast from Balcarres to Yorkton and Langenburg, as well as around Estevan. Claims from July 2 stretch all the way from Consul in the southwest to Kelvington in the northeast of the grain belt.

The July 12 storm that hit Alberta also hit areas of northwest Saskatchewan including Macklin, Luseland, Senlac and Denzil. Claim numbers are still being tallied.

Manitoba

Hail claims in Manitoba total just below 400, as compared to about 230 two weeks ago. This is significantly below average for this point in the season.

The majority of claims filed in the past two weeks have been as a result of thunderstorms July 13, with most of those coming from south of Darlingford to south of Roland.

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Hail claim numbers continue to rise

canadian-crop-hail-association — Thu, 31 Jul 2008 13:54:00 +0000

(July 31) As of earlier this week, approximately 3,450 hail claims had been filed in Alberta with Saskatchewan numbers approaching 10,500.

The Alberta numbers, which do not include claims on the hail endorsement offered as part of crop insurance coverage in that province, continue to run ahead of last year’s pace and last year turned out to be a record.

Over the past two weeks, there have been two major storms in Alberta. On July 15, areas around Vulcan, Taber, Lethbridge, Picture Butte, Enchant, Carmangay, Lomond and Barons were hit. On July 16, another storm hit the Lethbridge, Ft. Macleod and Warner area. There was also storm activity July 27 which hit the Olds, Airdrie, Wainwright, and Provost areas.

The Saskatchewan claim total is about double the number which would be expected in a normal year at this time. While many new claims continue to be added, most of the claims to date have come from storms that occurred between July 6 and 11. Although there have been claims from most areas of the province, the southwest has been the hardest hit.

All available adjusters are busy in Alberta and Saskatchewan. In fact, some adjusters from Manitoba are working on claims in Alberta.

In Saskatchewan, hail insurance companies continue to work on the backlog of claims from storms in the second week of July. On large claims, two adjusters are sometimes being dispatched. In general, companies are trying to work on the older storms first and in areas where the crops are the most advanced.

Producers are urged to check all their fields for damage prior to an adjuster arriving as this will speed up the adjusting process.

While producers are understandably anxious to get their damaged crops adjusted, calling in to ask about the status of their claim does not expedite the adjustment procedure. If, however, a producer wants to put a damaged crop to an alternate use, it’s important to leave representative test strips and producers should contact their insurance company for instructions.

Hail claims in Manitoba are approaching 1,600. That is considered normal to slightly below normal for this time of year. The companies doing business in Manitoba have registered fewer than 350 new claims in the past two weeks.

Adjusters are largely caught up. Some claims that were deferred from early storms are now being reassessed to determine the level of crop recovery.

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