INSURANCE NEWS

December 15, 2023

CATACLYSMIC CASH-OUTS

Initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ) indicate that the past few months of summer storms in Alberta and the Prairies have generated over $300 million in insured losses. When calculating these losses, estimates were generated from damages incurred from hail, wind and rain damage. The total $300 million plus does not take into account damages incurred due to the recent wildfires. According to Catastrophe Indices and CatIQ, of the total insured losses, over 90 million (30 percent) went toward replacing or repairing storm-damaged vehicles in Alberta. Since 2020, insured losses to vehicles in Alberta from severe weather events totals more than $500 million. The IBC notes that with extreme weather patterns becoming more frequent, so too will increased insured losses due to storms.

INSURANCE RATES FEEL THE HEAT

According to a recent report made by the Insurance Bureau of Canada, this summer’s wildfires in the Okanagan and Shuswap areas of British Columbia have resulted in over $720 million in insured losses. This data–taken from initial estimates made by Catastrophe Indices and Quantification Inc. (CatIQ)–represents the most costly insured event ever recorded in British Columbia and the tenth costliest in Canada’s history. Between the two districts, the Okanagan area fires, which ran from August 15 to September 21, 2023, equate to approximately $240 million in insured damages; the Shuswap area fires, which ran from August 18 to September 25, 2023, equate to over $480 million in insured damages. “This year’s wildfire season has broken all records in terms of the amount of land burned and damage caused to homes and businesses in B.C.,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). “Canada’s insurers are here to help their customers rebuild following this devastating loss,” added Sutherland.