Insurance claims from summer disasters break records
Insurance claims from summer disasters break records | Insurance Business Canada
Claims
Insurance claims from summer disasters break records
New high represents more claims than in any summer in the past two decades
Claims
By
Terry Gangcuangco
This year’s summer season has seen a record-breaking number of home, auto, and business insurance claims as a result of the flooding in Toronto and southern Ontario, the Jasper wildfire, the Calgary hailstorm, and the floods in parts of Quebec.
According to the Insurance Bureau of Canada (IBC), approximately 228,000 insurance claims have been lodged due to the four events. For context, July and August 2023 saw 113,000 claims, with 160,000 filed for the entire year.
IBC president and chief executive Celyeste Power (pictured) noted: “This summer has been the most challenging in history for the hundreds of thousands of Canadians across the country who were impacted by these storms and wildfires.
“The insurance industry is there: we are on the ground in Alberta, Ontario, and Quebec, assisting our customers as they put their lives back together, and we’ll be there throughout the recovery and rebuilding.”
She highlighted that the four weather events within four weeks resulted in more claims than in any summer in the past two decades. Power also pointed out that the high volume of claims, combined with labour shortages and supply chain issues, means the process will take longer than usual.
“All orders of government must commit to three key things that will help better protect communities and families,” added Power, urging for greater government action. “First, the federal government must commit the necessary resources this fall to stand up the National Flood Insurance Program for high-risk households with the support of the provinces and territories.
“This is the single, most important step the government can take to better protect homeowners from the financial risks of climate change.”
The CEO also called for governments to focus on reducing risk and making homes less vulnerable to events like floods and wildfires. Lastly, she stressed the need for long-term policy changes, including halting development in flood-prone areas, investing in infrastructure upgrades to mitigate disasters, and launching programs that fire- and flood-proof homes.
“As Canada embarks on one of the most ambitious housing plans in its history, it is important to remember that the most expensive property is the one you have to build twice,” she said.
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