Saskatchewan’s farmer-owned hail insurance company celebrated its 100th year in operation last year by insuring farmers against record losses.
Saskatchewan Municipal Hail Insurance (SMHI) provided total coverage of $2.1 billion in 2016, the first time the company’s risk portfolio has ever surpassed the $2 billion mark.
All told, the farmer-directed hail insurer provided coverage on 15.2 million acres, processed 7,000 claims and paid out $70 million to policy holders.
Total payouts represented 77 percent of the $91 million collected through premiums.
SMHI president Wayne Black said 2016 was an outstanding year for Saskatchewan growers, at least initially.
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“We seeded pretty much wall to wall in the province, more than 36 million acres,” he said.
And through SMHI, “you … ensured about 15.2 million acres.”
After 100 years in business, SMHI has done what few other farmer-owned businesses have managed to do.
It has grown its business to become the largest player in its market, and it has retained a farmer-directed governance structure.
Over the years, the company has built an accumulated surplus of more than $200 million, which is reinvested and used to keep grower premiums at affordable levels.
Black said SMHI policy holders saw a 7.1 percent decrease in premiums in 2016 and hinted that growers can expect a further softening of premiums in 2017.
Last year was a busy hail season and a long one, but by no means the worst.
Black said the first hailstorm of the season was recorded June 2 and the last storm was Oct. 15.
“It was a busy season, 110 storms compared to 98 in 2015, and they were big storms, some of them,” he said.
“The largest one was July 3 with just about 300,000 acres affected in 57 municipalities, so you can see that when these storms occur, they can have a wide-reaching effect.”
The July 3 storm affected landowners from the Saskatchewan-Alberta border to Davidson, Sask., about an hour southeast of Saskatoon.
The most expensive storm of 2016 took place July 22, Black added.
That storm caused losses of $10 million, including $6.2 million worth of damage in the rural municipalities of Pense and Moose Jaw.
SMHI now has 125 adjusters in the field and adjusts all claims using a paperless, tablet-based system.
The organization has also launched a new book to commemorate 100 years in business.
The Great White Combine chronicles the development of SMHI and the evolution of Saskatchewan agriculture since the early 20th century. The book was written by Lynn Gidluck.
