Insurers handling record amounts of claims this summer
Insurers have handled double the amount of claims this summer compared to last year, according to the Insurance Bureau of Canada.
Approximately 228,000 insurance claims have been filed following this summer’s four major catastrophes: flooding in Toronto and southern Ontario, the Jasper wildfire, the Calgary hailstorm, and flooding in Quebec. All occurred in the span of four weeks.
Comparatively, last year insurers reported 113,000 claims in July and August and 160,000 claims for the full year.
That’s a 406% increase compared to the previous 20-year claims average, according to IBC.
“Canada’s home, auto and business insurers are reporting the most challenging summer on record for damage from weather events and natural disasters,” the release reads.
The four catastrophes this summer also occurred within a span of 24 days — which will undoubtedly strain adjuster capacity as claims teams scramble to respond to the most time-sensitive damages.
The Quebec flooding alone caused 70,000 claims and counting, which is 10 to 17 times the usual volume, IBC’s Quebec office previously reported.
The Jasper wildfire, which destroyed 358 properties, or approximately 30% of the townsite, cost insurers $880 million in damages, according to estimate from Catastrophe Indices and Quantification Inc.
And the Toronto and Ontario flooding, which occurred on July 16, tallied $940 million in damages from just a few short hours’ worth of rain.
Damages are still being totalled for the Quebec floods and Calgary hailstorm from July, but the industry can expect them to come with hefty price tags. IBC says it takes 30 to 45 days for estimated damages to be totalled following catastrophes.
And following the four catastrophe events this summer, 2024 is shaping up to be “another costly year,” says IBC.
Just the Toronto floods and Jasper wildfires alone cost the industry $1.8 billion in damages.
That’s over halfway to $3 million — the “new normal” cost of insured damages in Canada across the industry, according to IBC.
Including the Calgary hailstorm and Quebec floods, not to mention the previous quarters’ damages or any minor Cats that may have occurred this summer, the industry could very well see $4 billion in damage by the end of the year, if not before.
By comparison, severe weather in 2023 caused over $3.1 billion in insured damage across Canada.
Cars drive slowly through flooded streets in Sainte-Anne-de-Bellevue on the Island of Montreal after heavy rains hit the area on Friday, August 9, 2024. THE CANADIAN PRESS/Peter McCabe
