Industry loss from July floods in Toronto and southern Ontario over $940m: CatIQ
![canada-toronto](https://www.cheapsr22.us/wp-content/uploads/2024/08/Industry-loss-from-July-floods-in-Toronto-and-southern-Ontario.jpg)
Severe flash flooding that affected the city of Toronto and parts of southern Ontario, Canada during the month of July 2024 are estimated to have caused on insurance industry loss of above $940 million, according to Catastrophe Indices and Quantification Inc. (CatIQ).
The flooding struck on July 15th and 16th, adds to an already expensive few months for the Canadian insurance industry.
In fact, at over $940 million, this flood event has caused a larger industry loss than any single catastrophe event in 2023.
“The insurance industry has long warned that severe weather events are becoming more frequent and intense. This summer is, unfortunately, proving that statement is correct,” commented Amanda Dean, Vice-President, Ontario and Atlantic, Insurance Bureau of Canada (IBC). “This summer, Canada’s insurers have been simultaneously supporting customers impacted by the Toronto floods, the Calgary hailstorm, the Jasper wildfire and flooding across Quebec. The insurance industry is on the ground in Ontario, Alberta and Quebec, assisting customers as they put their lives back together. The emotional distress that these events have caused thousands of Canadians cannot be overlooked.”
The Canadian insurance industry is also in the early stages of responding to further severe flooding that occurred in Toronto and Montreal in recent weeks, which was driven by the remnants of hurricane Debby as it headed north that dumped as much as 170mm of rainfall on locations in Canada.
In addition, a tornado touched down in Ayr, Ontario at the weekend, which is also expected to have driven more insured losses.
The IBC said that these simultaneous events have “placed immense pressure on insurance adjuster resources for many insurers.”
The IBC said that it is working with governments and regulators to address adjuster capacity across Canada, saying, “Adjuster access is critical following natural catastrophes, as they ensure the industry can support consumers as quickly as possible.”
“With several large natural disasters in the span of one month, including another round of torrential downpours in the Greater Toronto Area over the weekend, coupled with skilled labour shortages and supply chain issues, we are urging affected customers to be patient. Rebuilding will take time,” Craig Stewart, Vice-President, Climate Change and Federal Issues, IBC explained. “IBC and its members are calling on governments to improve disaster preparedness and recovery across the country.”
“Unless the federal government commits the necessary resources this fall to stand up the National Flood Insurance Program while Provinces and Territories commit to mitigating flood risk, insurers will not be able to support the program before the next federal election. This is the single, most-important step the government can take to better protect homeowners from the financial risks of climate change,” Stewart continued. “Governments have to make the hard choices to stop building and rebuilding on flood plains, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to fire- and flood-proof homes.”
Insured catastrophe losses in Canada reached CAN $3.1 billion for full-year 2023, which became the fourth most expensive year for the insurance industry on record, according to CatIQ.
The IBC noted that, “Insured losses related to severe weather in Canada now routinely exceed $2 billion annually. By comparison, between 2001 and 2010, Canadian insurers averaged $675 million a year in losses related to severe weather.”