Modelling shows that most Saskatchewan Crop Insurance customers will see decreases in premium-per-acre costs under the new individual premium adjustment, acting chief executive officer Jeff Morrow told the Agricultural Producers Association of Saskatchewan.
Increases will be capped at $5 per acre.
Some producers will see premiums rise by more than that, but it won’t be due to the move from the experience discount surcharge. Morrow told the APAS annual meeting held Dec. 8-9 in Saskatoon, that the experience discount surcharge wasn’t the best differentiator of risk.
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Beginning in 2023, individual premiums will be applied per crop, based on the base premium for each risk zone.
Looking at the data for 2003 to 2020, which were generally good years, the corporation found there were producers with very low claim histories at a 50-percent discount and those with high claim histories at the same discount.
“When you have lots of producer stacking up at that 50 percent end of the scale it becomes imbalanced,” he said. “This individual premium will rectify that.”
Morrow said production practices have evolved and premiums have to remain relevant to those changes.
