Costly Calgary hailstorm – IBC releases initial insured loss estimate

Costly Calgary hailstorm – IBC releases initial insured loss estimate | Insurance Business Canada

Catastrophe & Flood

Costly Calgary hailstorm – IBC releases initial insured loss estimate

More than 130,000 claims are being processed

Catastrophe & Flood

By
Terry Gangcuangco

The hailstorm that battered Calgary in early August 2024 has been described as the second-costliest event in Canada, next to the Fort McMurray wildfire in 2016. So how much insured damage did the hailstorm cause?

According to preliminary figures from Catastrophe Indices and Quantification (CatIQ), whose estimate is provided under licence to the Insurance Bureau of Canada (IBC), the hailstorm resulted in nearly $2.8 billion in insured losses.

Citing information from Environment and Climate Change Canada, IBC said there were instances of hailstones as large as chicken eggs that damaged properties and vehicles.

He added that Alberta’s insurers are managing over 130,000 claims resulting from the hailstorm. Sutherland emphasized that rebuilding would take time but assured that insurers would remain committed to helping the community recover.

Alberta has been particularly vulnerable to expensive weather-related disasters in recent years. IBC highlighted that five of Canada’s 10 most costly disasters have occurred in the province since 2016, including hailstorms in 2020 and 2021 that caused more than $1.2 billion and $700 million in insured losses, respectively.

In response to the growing frequency of these events, there is a push for government investment in resilience programs, such as the Resilient Roofing Rebate Program, which could enhance the ability of homes and businesses to withstand future hailstorms.

Craig Stewart, IBC’s vice president for climate change and federal issues, highlighted the disparity between the cost of this single hailstorm and the federal government’s investment in climate adaptation.

“Insurers paid out more in claims for this one hail event than the federal government has invested on climate adaptation over the past decade,” he said.

Stewart urged governments to implement more robust climate preparedness measures, such as better hail alert systems, enhanced building codes requiring hail-resistant materials, and comprehensive provincial and federal programs to help homes and businesses become more resilient.

What do you think about this story? Share your thoughts in the comments below.