The final tally is in and 2023 now ranks as the fourth-worst year for insured losses in Canada due to severe weather with hail, wildfire, wind and flood events having caused over $3.1 billion in insured damage according to year-end estimates from Catastrophe Indices and Quantification Inc. (CatIQ).
In Alberta alone, damage to property exceeded $330 million, including over $100 million paid to repair and replace vehicles following hail and flood events. Since 2020, insured losses due to severe weather in Alberta has exceeded $4 billion. Over $500 million of that went to insurance claims involving damaged vehicles.
“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, Insurance Bureau of Canada (IBC). “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.”
Alberta’s auto insurance market is under considerable strain due to the rate cap implemented last November. With inflation, auto theft, and legal awards continuing to grow, severe weather events add another cost pressure to auto insurance premiums in Alberta, which is why IBC is calling on government to urgently implement reforms that improve the affordability of coverage moving forward.
IBC reminds consumers that damage caused by hail, wind and rain is generally covered by standard home, commercial property and comprehensive auto insurance policies, but there can be limitations. Speak to your insurance representative to understand your coverage for weather related events. Insurers continue to work diligently through the claims process to help clients impacted by the 2023 storms. If you have questions about home, auto or business insurance, speak with your insurance representative regarding your specific policy or call IBC’s Consumer Information Centre at 1-844-2ask-IBC for general information.
The amount of insured damage is an estimate provided by CatIQ (www.CatIQ.com) under licence to IBC.
