ON THE RISE
Canada’s home, auto and business insurers are reporting the most challenging summer on record for damage from weather events and natural disasters, according to the Insurance Bureau of Canada (IBC). Four major catastrophes were contributing to approximately 228,000 insurance claims this past summer, says IBC: flooding in Toronto and southern Ontario; the Jasper wildfire; the Calgary hailstorm and flooding in Quebec. These four catastrophes all happened within 24 days, adding strain to adjuster capacity. In comparison, insurers reported 113,000 claims in July and August 2023 and 160,000 claims for the entire year. The 228,000 claims reported to IBC this year represent a 406 percent increase compared to the previous 20-year average, according to IBC.
UNDERWRITING UNCERTAINTIES
GEICO has revealed that it will not be covering Tesla’s Cybertruck under its insurance system, saying that the vehicle doesn’t meet its underwriting guidelines. Tesla Cybertruck owner, Robert Stevenson recently revealed that GEICO is removing the Cybertruck from its policy plan, commenting on social media platform X that “@GEICO said they can no longer insure my Cybertruck.” While GEICO did not further specify its reasons for no longer covering the vehicle, Torque News originally cited several issues that could have influenced the decision, including the time and costs required to complete repairs.
