Are You Effectively Managing Your Crop Risk in Canada?
The drivers of crop losses in Canada vary significantly from year to year.
Drought/Heat
in 2006
Flood/Moisture
in 2010
Frost
in 2015
Three recent years have exceeded the modeled average annual insured loss for crop hail of CAD 2.2 billion.
2008
Gross Insured Loss
CAD 3.2 Billion
Saskatchewan experienced its highest losses in history due to crop damage from hailstorms
2012
Gross Insured Loss
CAD 2.7 Billion
The Prairie Provinces experienced their second highest number of hailstorms on record
2016
Gross Insured Loss
CAD 2.8 Billion
Manitoba experienced its highest hail loss ratio since 1970
Planted crops across Canada have changed significantly in the past several decades.
Barley
46%
decrease in seeded acreage since 1980
Canola
342%
increase in seeded acreage since 1980
Lentil
2,890%
increase in seeded acreage since 1981
Soybean
823%
increase in seeded acreage since 1980
The use of genetically modified crops is increasing as they are better able to withstand extreme weather conditions.
Genetically modified soybean
57%
increase in seeded acreage in Quebec and Ontario combined since 2000
Genetically modified corn
62%
increase in seeded acreage in Quebec and Ontario combined since 2000
In an ever-changing landscape, relying on historical experience alone is not sufficient for managing Canadian crop risk. How can you effectively manage your risk?
Account for today’s market conditions by taking a probabilistic view of risk that captures the effects of extreme weather on crops
Get more realistic loss estimates by leveraging a 10,000-year stochastic catalog that comprises real-world conditions of crops at the time of damage
Identify aggregations of risk by using the most current crop exposure data available
Make more informed pricing and underwriting decisions by incorporating today's policy conditions
