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Canadian Crop Hail Association Position Paper Reinstatement of Spot-loss Hail under Saskatchewan Crop Insurance, October 2, 2006

A number of groups are pushing for the reinstatement of spot-loss hail coverage within the Saskatchewan Crop Insurance Corporation (SCIC). The idea seems to be popular with producers who are looking for every advantage as they struggle to remain economically viable.

Spot-loss hail insurance has been available to Saskatchewan producers on a continuous and competitive basis for over 90 years. A municipal association, a co-operative and a number of private insurers have provided the insurance coverage.

Saskatchewan Municipal Hail Insurance (SMHI) and the following members of the
Canadian Crop Hail Association (CCHA) do business in Saskatchewan:

• Additional Municipal Hail Limited (AMHL)
• Butler Byers Hail Insurance Ltd.
• Canadian Hail Agencies Inc.
• Co-operative Hail Insurance Company
• Lombard Canada
• McQueen Agencies Ltd.
• Farmers Hail Insurance Agencies, Ltd.
• Rain and Hail Insurance Service, Ltd.
• Western Agricultural Insurance Corporation
• Wray Agencies Ltd.

SMHI (together with AMHL) is the largest insurer writing about half of the total
business. The other insurers include stock companies, a co-operative and a number of family owned businesses. Rates are extremely competitive.

Reinstating spot-loss hail coverage would mean a decrease in business for these
companies. Beyond this self-interest, the majority of the members of the CCHA believe there are a number of reasons why the return to government subsidized hail insurance under Saskatchewan Crop Insurance would not be in the best interests of producers and taxpayers.