Ten per cent of country’s insured losses in Alberta alone
For all the smoke, fire and flood that happened across Canada this year, damage to property in Alberta alone exceeded $330 million, according to estimates from Catastrophe Indices and Quantification Inc. (CatIQ).
That’s nearly 10% of all insured losses across Canada, based on the 2023 national estimate of $3.1 billion in insured damages.
Most of the losses in Alberta ($300 million) appear to have stemmed from the Prairie summer storms, which caused severe storm-related damage to property.
“Alberta continues to experience an alarming trend in severe weather events and this was the third straight year in which the province saw significant insured damage from hail, wind and rain,” said Aaron Sutherland, vice-president, pacific and western at Insurance Bureau of Canada (IBC) in a release.
Meanwhile, the province also had a record year for wildfires, with a total of 22,000 square kilometres burned from March 1 to Oct. 31. That’s 10 times the five-year average of 2,262 square kilometres.
What’s more, since 2020, insured losses due to severe weather in the province exceeded $4 billion, and $500 million of that went to insurance claims involving damaged vehicles.
Alberta’s auto line is already fraught with tension as a provincial rate cap is putting pressure on the auto insurance system, according to industry professionals. All the while, one third (over $100 million) of Alberta’s insured damages were paid to repair and replace vehicles following hail and flood events in 2023.
“With inflation, auto theft, and legal awards continuing to grow, severe weather events add another cost pressure to auto insurance premiums in Alberta,” IBC wrote in a release.
“The costs associated with these devastating events are placing significant pressure on insurance premiums in the province. It’s more important than ever that we redouble our efforts to better protect communities to help improve the affordability of insurance coverage moving forward,” Sutherland said.
Burnt out trucks from a wildfire sit on a property near Drayton Valley, Alta., Wednesday, May 10, 2023. Alberta Wildfire says it saw an average number of wildfires last year, but the area burned across the province set a record. THE CANADIAN PRESS/Jason Franson
