Farmers claimed $47.7 million in hail losses through the Saskatchewan Municipal Hail Insurance Association last year.
SMHI president Wayne Black said that figure represents a loss-to-premium ratio of less than 80 percent, or slightly above break even.
He told delegates at the Saskatchewan Association of Rural Municipalities annual convention that the number of acres insured and amount of risk written both increased in 2007.
Last year represented the “second largest year for risk and premium to date,” he said.
SMHI was formed in June 1917.
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The company handled more than 7,000 claims last year. Several rural municipalities reported losses of more than $1 million, including the RM of Buckland, near Prince Albert, where claims totalled $3.9 million and represent the largest payout in SMHI’s history.
The Eston area had $2.8 million in hail damage, and the nearby RM of Kindersley was right behind at $2.7 million.
“Spot loss hail coverage must form an important part of your risk management strategy,” Black said. “You own this organization so why not use it.”
Black said for the first time canola represented more than 20 percent of total acres insured, including those under the wholly owned subsidiary, Additional Municipal Hail.
Fifty-seven percent of the crops were insured at $100 per acre or more, for an average of $88. In 2006, the average was $83. The maximum dollar coverage remains $150 per acre for 2008. Black said the association will monitor that figure to see if an increase is warranted.
