Is private insurance capable of handling the loss?

[bucket]

Watched a video of how GARS works...it seems they would have some big payments coming due ..

Also noticed Fairfax involvement...they certainly know how to extract government money.

And if they do ...does that change the agristabilty income test?


Sunday thoughts.

[AlbertaFarmer5]

I think all insurance companies are required to be further insured with reinsurance, against extraordinary circumstances such as this

[bucket]

I think all insurance companies are required to be further insured with reinsurance, against extraordinary circumstances such as this

Until they are not covered and governments step in to help with disasters ...

[blackpowder]

It's taken a while but any bets on GARS folding it's tent?
Who's going to qualify/afford them after this?
Who here saw it coming?

[bucket]

It's taken a while but any bets on GARS folding it's tent?
Who's going to qualify/afford them after this?
Who here saw it coming?

Backed by Fairfax..you know...the company in bed with AGT on the Churchill scam. 100s of millions from government.

[blackpowder]

Is it an advantage or is it depressing, having seen this all before?
I take no joy in saying I told you so.

[bucket]

Is it an advantage or is it depressing, having seen this all before?
I take no joy in saying I told you so.

Worse part is Marit wants to push insurance the way of private insurers.

They should be making crop insurance up to date with more reflective yields and prices...but they won't ...too many $$$$$

Just a complete lack of give a shit for the baseload of the saskatchewan economy.

[blackpowder]

Here, provincial crop insurance has always been an avenue for subsidy. Even if however small/non existent some years.
It's also trade friendly.
How do we compare to the dryland small grains states????
Totally private crop insurance would not be like auto insurance.
I think eventually participation rates would fall off with only rather stable areas able to afford it.
Subsequently larger farms then learning to self insure.

[jamesb]

To buckets original question pretty well all insurance companies have reinsurance. Seem to remember that SCIC never used to and was a big reason that our rates moved around so much. I am wondering that they must these days? It will be interesting what the how much the rates move for next year. I expect there are going to be some big payouts if guys bought right. That heat blast insurance was interesting. Shoulda , coulda? Unfortunately I do feel that if these private insurance programs work in the long term then it will be a lot easier on the govt to not anti up on other programs? I understand that private crop insurance is a real mixed bag in the US but it would be nice to buy what we want for coverage the same way we can for spot loss hail. Cost is the big thing I guess.

[bucket]

What will premiums be next year???

It seems any time I make a claim on something through insurance by the time I do the math on the premium increase ...its cheaper to just fix it...

Having said that.... the potential for combine fires this year is higher than ever, considering lower cutting , hot dry weather.

[jamesb]

What will premiums be next year???

It seems any time I make a claim on something through insurance by the time I do the math on the premium increase ...its cheaper to just fix it...

Having said that.... the potential for combine fires this year is higher than ever, considering lower cutting , hot dry weather.

Last winter I spent quite a bit of time looking at GAR's and Just. What I saw was there is a large number of choices one can make on the types and level of coverage that can affect what is covered for. I know of guys that admitted that they didn't pick a high enough cover and almost trigged but didn't. It seems that the product has been in a constant state of evolution for quite a few years. I have been quizzing the accountant and banker on the different products and for sure there are more and more trying it. For sure its not cheap either. From my understanding they use Olympic averaging to get a rate offer.

[furrowtickler]

There is going to be issues yet , as some have pointed out .

One very big concern is canola in many areas
Thin short stands .
The biggest question is to swath of not this year
Will be very short stubble and not a heavy swath
Also with thin stands the risk of pod shatter loss increases dramatically for leaving for straight cut .
West central sask faced this last year and it did not turn out good .

Will totally depend on high winds this fall
Will be a tough decision

[Sheepwheat]

There is going to be issues yet , as some have pointed out .

One very big concern is canola in many areas
Thin short stands .
The biggest question is to swath of not this year
Will be very short stubble and not a heavy swath
Also with thin stands the risk of pod shatter loss increases dramatically for leaving for straight cut .
West central sask faced this last year and it did not turn out good .

Will totally depend on high winds this fall
Will be a tough decision

Whe I had 6 bushel canola in the wet years with same looking stands as this year I see pictures of, I straight cut, even if it wasn’t pod shatter resistant. Not much more to lose at that point. Waste of time to swath. It’s not like crop insurance is going to come out and see how you harvested it, or if you had shelling. If you’re below coverage by that much, yes you salvage what you can, but at what extra cost. I was also getting stuck constantly. Why fight both with the swather and the combine in the mud.

[iceman]

What will premiums be next year???

It seems any time I make a claim on something through insurance by the time I do the math on the premium increase ...its cheaper to just fix it...

Having said that.... the potential for combine fires this year is higher than ever, considering lower cutting , hot dry weather.

GRs was raising premiums on guys this spring that came close to a claim last year

[sumdumguy]

Probably there will be lots of claims but many will just get over the trigger line, which really doesn’t feel too great. 👎