Natural disasters makes Alberta one of Canada’s riskiest provinces
Natural disasters makes Alberta one of Canada’s riskiest provinces | Insurance Business Canada
Catastrophe & Flood
Natural disasters makes Alberta one of Canada’s riskiest provinces
‘Premiums are going to go up more’
Catastrophe & Flood
By
Mika Pangilinan
Alberta has faced several significant natural disasters in recent months, making it one of the riskiest provinces to live in, according to the Insurance Bureau of Canada (IBC).
The wildfires that ravaged through the province in May and June have caused unprecedented damage, burning nearly 1.5 million hectares of land.
While officials have yet to announce a final tally, early estimates have pegged total losses from the fires at $700 million.
“We know that it’s the worst wildfire event in Alberta’s history,” said public safety minister Mike Ellis via a Global News report. “We are closing in on 1.5 million hectares burnt.”
But wildfires are not the only concern for Alberta. Floods have also hit some of the same areas affected by the blaze, exacerbating the damage and challenging recovery efforts.
Furthermore, a tornado recently touched down in downtown Alberta, identified as one of the strongest in the province’s history.
He said payouts have skyrocketed from an average of $400 million annually to $3 billion in the last year alone.
These escalating costs are also reflected in insurance premiums increasing across the country, he added.
“Alberta and British Columbia are the two riskiest places in the country based on natural disasters that we’ve seen in recent years,” Stewart told Global News. “So unfortunately, premiums are going to go up more.”
Stewart emphasized that no single event causes premiums to rise but the cumulative impact of extreme weather events over time.
“Last year [the impact] was $3 billion,” he said. “We are going to be in that range again of $2 to 3 billion.”
Alberta’s susceptibility to natural disasters is not a new phenomenon. The province accounts for half of all insured losses associated with extreme weather events over the years, according to Stewart.
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