Soaring input costs and shifting farm models are exposing the limits of traditional insurance. According to Warren Ting (pictured), vice-president of underwriting at HTM Insurance, carriers need a fuller picture of today’s producers – especially those scaling up or managing heavy debt.
“We really need to dig deeper. It's not just about the balance sheet,” Ting said. “You’ve got to understand how the farmer manages risk, how they’re investing in safety, and how they adapt – whether that’s with side ventures, new crops, or operational efficiencies.”
Farmers are pivoting more quickly than ever, Ting noted – sometimes switching crops mid-season or adding high-risk activities outside of their original coverage.
“That’s a completely different risk profile,” he said. “And many are going beyond crops altogether – opening farm shops, launching agritourism, renting out space. It’s closer to running a retail operation than traditional farming.”
These hybrid models blur the line between agricultural and commercial risks. “We’re seeing land rented for campgrounds, trailer parking, and other non-farm uses,” said Ting. “You can’t always split these risks neatly into separate policies – they overlap.”
As a mutual, HTM Insurance has deep local ties. Ting believes that proximity gives them a leg up, especially when farms are shifting toward solar installations, environmental programs, or secondary revenue streams.
“We evolved to serve farmers when major carriers didn’t understand what they were doing,” he said. “That legacy matters. But it’s only valuable if we continue adapting alongside them.”
Ting warned that raising premiums alone won’t address the pressure many producers face – from skipped maintenance to riskier financial decisions. “Sure, hiking rates is easy. But it’s not sustainable. Mutuals need to act as advisors, not just respond to renewals or claims.”
Ting advocates for insurance products that reflect seasonal and diversified operations. A modular, usage-based approach – similar to some auto insurance models – could provide flexibility without sacrificing core protections.
“If they’re not farming in winter, what else are they doing? We should have coverage that matches that reality,” he said.
HTM offers discounts for farms using smart tech like aerial imaging, electrical monitors, and sensor-based systems. Ting sees this as a key direction for modern risk mitigation. \
“There should be incentives for proactive maintenance. If a client is using tech that prevents losses, we want to reflect that in the premium.”
Severe weather is putting stress on long-standing actuarial assumptions. What were once one-in-100-year events are now showing up every few seasons – if not annually. “It’s not if Northern Ontario or parts of Quebec burn – it’s when, and how bad it gets,” said Ting.
To help mutuals remain stable, Ting supports public risk-sharing tools like federal backstops or risk pools. He also pointed to parametric insurance – already gaining ground globally – as a model Canada should expand.
“Parametric insurance pays out based on storm intensity, not loss assessment. It speeds up recovery and provides certainty,” he said. “Aviva just issued Canada’s first parametric policy. It’s a good start.”
With mutuals relying on surplus, not shareholder capital, repeat climate losses pose a systemic threat. “If our war chest keeps taking hits, the sector can’t sustain itself. That’s why we need more tools – earthquake pools, ag risk pools, national coordination.”
Ultimately, Ting sees this as a shared responsibility between industry and government. “We’re not just insuring this year’s crop,” he said. “We’re trying to protect the next generation of Canadian farmers.”
