Four Alberta catastrophes this year have cost insurers a grand total of about $2 billion, the Insurance Bureau of Canada confirmed this week.
A hailstorm June 13, affecting mainly northeast Calgary, topped the list as it caused about $1.2 billion in insured damages.
Quoting Catastrophe Indices and Quantification Inc. (CatIQ), IBC noted Tuesday that April flooding in Fort McMurray cost the industry an estimated $522 million, coming in at second on the list.
“Weather has hit our province hard this year,” said Celyeste Power, IBC’s Edmonton-based western vice president.
A storm that hit the Calgary, Drumheller, Airdrie and Strathmore areas on July 24 cost more than $135 million in insured damages and resulted in over 10,000 claims, IBC said. A fourth event — a storm that occurred over Aug. 2-3 in central Alberta — caused an additional $58 million in insured damages.
The June hailstorm — which saw hail the size of tennis balls rip through homes, businesses and vehicles — is high on the radar for companies that rate the financial strength of insurers.
“Until recently, hail was considered secondary to the big three catastrophe perils: flood, wind, and fire. With hailstorms, if this severity and the rise in the frequency of Alberta hailstorms in the last 20 years, Canada could be seeing a shift in the cat landscape,” A.M. Best Company Inc. said in a report released Tuesday.
Between 1983 and 2008, the average yearly total for insured damage related to severe weather across Canada was $422 million, IBC reported Thursday. From 2009 to 2019, Canada-wide severe weather losses averaged about $1.9 billion annually.
“Water is certainly a big driver of these losses but we can’t discount hail,” said Glenn McGillivray, managing director of the Institute for Catastrophic Loss Reduction, during a recent Canadian Underwriter webinar.