AIR Worldwide launches new model showing hail risk for Canada
Based on 10,000 simulations of potential annual hail activity, the crop model enables insurers and reinsurers “to assess the likelihood of a wide range of losses, including larger losses than have been experienced by the industry, providing a complete view of risk to crop hail portfolios,” said Boston-based AIR, which is a unit of Verisk Analytics.
“Hail is a significant peril in Canada, causing damage to crops as well as to property and vehicles,” said Ken Doleman, president and CEO, Palliser Insurance Co. “A thorough understanding of this complex peril is evident in the new, sophisticated crop hail model from AIR. This model will help us make better underwriting decisions and model our portfolios more reliably. As a result, we can provide the best hail policies to protect the farm customer’s hard work.”
The model’s probabilistic view of potential hail activity provides a robust view of the risk of loss for the coming season to crop hail contracts in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan, the company said.
Users of AIR’s Crop Hail Model for the United States now have an expanded view of North American crop hail risk because the models for Canada and the U.S. use the same 10,000-year hail catalogue, covering the contiguous United States and nine southernmost Canadian provinces, AIR explained.
Source: insurancejournal.com