The document is a presentation by Swiss Hail Insurance Company about crop insurance in Switzerland. It discusses the challenges posed by climate change, including more frequent hail, storms, heavy rain and flooding. It outlines the company's goals of remaining organized as a mutual, offering comprehensive insurance protection and monitoring new needs from changes in agriculture. Swiss Hail is currently the sole provider of crop insurance in Switzerland, insuring over 75% of the agricultural area, and aims to address the risks farmers face from unpredictable weather and markets.

1. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
Swiss Hail Insurance Company
Hansueli Lusti, Vice Director

2. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 2
Preamble
The following presentation is about insurance against natural
hazards on all kind of crops – not livestock – in Switzerland.

3. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 3
Setting the Scene:
the Climate Change Challenge
for Effective Agricultural Insurance

4. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 4
• Climate is changing, globally and
nationally
• Agricultural adaptation strategies
are only applicable to a limited
extent

5. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 5
• From single peril to multi-peril
crop insurance
• State aid for extended multi-peril
crop insurance

6. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 6
• Farmer’s responsibility to cope
with
– capricious weather
– epizootic diseases
– dramatic market
– yield fluctuations
• Contractual agreements
• Insurance
• Futures

7. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 7
• Single peril insurance and multi-
peril insurance
• New forms:
– Farm revenue and farm yield
insurance
– Regional revenue and yield
insurance
– Weather derivatives

8. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 8
• Single peril insurance and multi-
peril insurance
• New forms:
– Farm revenue and farm yield
insurance
– Regional revenue and yield
insurance
– Weather derivatives

9. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 9
• Hail more often
• Increasing heavy storms
• Heavy rain and flooding
• Frost
• Drought

10. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 10
To face up to the challenge of climate change:
1. Integrated approach
2. Agree a policy
3. Build up knowledge
4. Monitor developments

11. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 11
The company
Swiss Hail is a private insurance company founded in 1880 by
Swiss farmers.
The company is legally organized as a mutual. That means the
company belongs to its members, who are also the policyholders
(ca. 35'000). This legal form reinforces solidarity, because profits
and losses are shared by the members.
Actually, the company at the time being is the sole provider for
crop insurance in the Swiss market.

12. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 12
► We want to remain being organised as a mutual and remain
independent.
► We will stay a special insurer with lean, cost-efficient company
organisation (ISO 9001) and high financial strength. Surpluses
are distributed to the Swiss members in the form of
reimbursements after successful accumulation of reserves and
accruals.
► Apart from our Swiss market, we are active in neighbouring
countries. We achieve a risk balance, exploit synergies and
ensure that our foreign engagement is self-supporting.
► Wir offer economical and comprehensive insurance protection
for hail and natural hazards on crops (core business).
Goals – Serving Agriculture

13. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 13
► We are present on the spot with our agents and guarantee fast
and competent loss adjustment with our experts.
► We continuously observe new needs as a result of changes in
crops and cultivation techniques, climate or the political and
legal framework conditions. In particular we follow the
development of state support for multi-peril coverage in the EU.
► We maintain and encourage contact with the authorities, the
media, associations and science.
► We want to recruit and keep performance-oriented employees
who identify with Schweizer Hagel.
► We work socially, sustainably and climate-consciously in all
areas.
Goals – Serving Agriculture

14. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 14
More information about the company
Personnel (Switzerland) 28 employees
301 agents
370 experts – loss adjusters
Key figures (2012) Sum insured Switzerland/FL 1’980 m. CHF
Insured area Switzerland/FL > 260‘000 ha
Premiums Switzerland/FL 49 m. CHF
Costs Switzerland/FL < 13.0%
Total sum insured* 2’950 m. CHF
Total premiums 109 m. CHF
Reserves > 220 m. CHF
* including foreign business
FINMA: Solvency I and II (Swiss Solvency Test) > 300%
Reinsurance Reinsured since 1928 with quota share and stop loss cover
State subsidies No more state subsidies since 1968

15. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 15
Insurance participation
1% - 25% versichert
25% - 50% versichert
50% - 75% versichert
75% - 100% versichert
Landwirtschaftliche Strukturen 2003 (Bundesamt für Statistik),
Versicherungsflächen 2007 (Schweizer Hagel)
Datenquelle:
Average = 76%
Insured percentage of
the
agricultural surface
insured
insured
insured
insured

16. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 16

17. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 17

18. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 18

19. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 19

20. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 20

21. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 21

22. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 22

23. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 23

24. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 24

25. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 25

26. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 26

27. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 27

28. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 28

29. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 29

30. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 30

31. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 31

32. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 32

33. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 33

34. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 34

35. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 35

36. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 36

37. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 37

38. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 38

39. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 39
Insurance cover
Hail
Erosion Landslide
Debris
Deposits
Flooding Earthquake
Fire
Lightening
Storm
Snow
pressure
Restoration costs – Clearing costs
Frost
Torrential rain
Aridity
Drought
Outgrowth
Additional risks covered since 2008
(limited tests with cereals, maize and rape)
Schweizerischer Fonds für Hilfe bei nicht versicherbaren Elementarschäden (Elementarschädenfonds = Swiss foundation)
+

40. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 40
Illustration of damages
Hail – maize Hail – sugar beet
Hail – apples Hail – grapes Hail – strawberries

41. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 41
Landslide Landslide and debris deposits
Flooding Flooding Erosion
Storm maize Snow pressure rape

42. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 42
Insurance forms, Indemnity, Loss adjustment
Forms of insurance
- Global coverage or crop specification list
- Annual yield is insured (global value or as specified by the
policy holder)
Indemnity in case of damage
- Lower compensation limit: between 10% and 20%
- Upper compensation limit: 100%
- Deductible: between 6% and 20%
- Example total damage on field crops:
Indemnity = 94% (100% - 6%)
Loss adjustment
- Loss adjustment guidelines (national and international trials,
studies)
- Initial training and continuous education of loss adjusters

43. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 43
Premium calculation system
Three elements are taken into consideration for
premium calculation:
1. Hail sensitivity of the crop
The crops are divided into 8 classes
2. Hail risk of the commune
Commune tariff for each crop group
3. The farm's number of damage free years
(one tenth system, bonus/malus)
For new policy holders 8/10
Per 2 years with no damage 1/10 reduction
Per year with damage 1/10 increase
Minimum 6/10
Maximum 15/10

44. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 44
How does the loss risk develop?

45. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 45
Climate Change <-> Loss Ratio in Switzerland
Changes in the 20th century
 In the 20th century the temperature increased
by an average of 0.6°C all over the world.
 Over the same period in Switzerland above-
average warming of 1.3°C was reached.
 In western Switzerland the temperatures even
increased by 1.7°C.
 Rainfall has decreased in Switzerland since
the beginning of the 20th century by 8%, but:
the frequency of extreme rainfall occurrences
(e.g. flooding, torrential rain, extreme
hailstorms etc.) has increased.

46. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 46
Loss ratio 1880-2009
0%
100%
200%
1880 1885 1890 1895 1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Loss ratios since 1880  Very high volatility …
100% Loss ratio = paid damages (losses) are equal to the premium income

47. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 47
Hail Risk

48. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 48
Drought increase
increase
unchanged
decrease

49. Schweizerische
Hagel-Versicherungs-Gesellschaft,
Genossenschaft
Société
suisse
d‘assurance
contre
la
grêle,
société
coopérative
Società
svizzera
d‘assicurazione
contro
la
grandine,
società
cooperativa
e+i Face-to-Face Meeting, 14 May 2013, Hotel Freienhof, Thun 49
Thank you for your interest and attention!