The Rural Voice, 1998-08, Page 25mutuals are a thing of the past and
can't survive if banks continue to
move further into the insurance
business and corporate mergers in the
financial• sector remain the trend —
farm mutual companies see
themselves as an integral part of the
province's rural communities.
This winter when the catastrophic
ice storm damaged farms across
Quebec and parts of Ontario, five
farm mutual companies in eastern
Ontario were overwhelmed with
insurance claims.
Robert Brenner, claims manager
at the Farm Mutuals Reinsurance
Company in Cambridge, estimates
there were more than 6,800 ice storm
claims, totalling close to $11 million.
By the end of June, the five
companies had paid out close to $7
million, said Brenner. While this is a
lot of money, it is only a fraction of
the close to 30,000 claims from the
storm received by the government's
eastern Ontario disaster relief
committee. Early tallies indicate
claims made to the government may
top $100 million. Some of the claims
were for items, lost wages and
insurance deductibles, often not
covered by insurance companies.
In Ontario there are 50
independent farm mutuals that fall
under their umbrella organization, the
Ontario Mutual Insurance
Association (OMIA). Glen Johnson,
president of the association, estimates
between 55-75 per cent of the farm
market is covered by a mutual
insurance policy.
"They are owned by people in the
community," said Johnson. "They
have become financially strong over
the 140 years since they have been
around."
Overall, Johnson said farm
mutuals had their best year in 1997.
He attributes the good year in large
part to weather conditions and
changes in auto insurance. Last year
the association's members had $250
million written in premiums.
Farmers' Mutual Insurance in
Lindsay boasted the largest
premiums written at $33 million, far
exceeding other mutual companies
with an average of $5 million in
premiums. "We have done very well
over the years," said Johnson.
"Farmers tend to be conservative
businessmen."
Mutual Insurance Company
264 HURON ROAD
SEBRINGVILLE, ONTARIO
393-6402
1-800-263-1961
•
DOWNIE MUTUAL
INSURANCE
COMPANY
I1.1-; X11r
CM,),
FARM, RESIDENTIAL, COMMERCIAL AND AUTOMOBILE INSURANCE
AGENTS
Lloyd Walkom 348-8050 Keith Patterson 348-8391
Steve Riehl 393-6708 Robert Ready 393-6965
R. Allan Fuller 271-6176 Lynda Vincent 527-2204
1-888-269-0377
BROKERS
F. A. Campbell & Son Insurance 348-8425
William Dietz Insurance 656-2585
Lawson Killer Insurance Limited 271-1840
Stonetown Insurance Brokers 284-3321
Serving 'The Community For Over 100 Fears.'
fo r m o s a
M U T U A L
Serving the Community's Insurance Needs Since 1880
• Farm • Home
• Auto
• Business
' Insuring Your
Way of Life
Formosa Mutual Insurance Co.
10 John St., Formosa, ON
519-367-5600 1-800-265-3020
AUGUST 1998 21
i