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June hail and rainstorms in Prairies cost an estimated $50 million in insured damage: CatIQ


July 28, 2016   by Canadian Underwriter


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The Insurance Bureau of Canada (IBC) reported on Thursday that a severe storm that swept across the Prairies late last month has resulted in more than an estimated $50 million in insured damage.

tornado

Photo: @RedDeerExpress.

The figure is based on an estimate from Catastrophe Indices and Quantification Inc. (CatIQ), which delivers detailed analytical and meteorological information on Canadian natural and man-made catastrophes.

The warm, humid air mass that crossed the region between June 28 and 30 resulted in multiple severe thunderstorms, heavy rainfall causing localized flooding, strong winds gusting over 100 kilometres per hour, intense lightning, significant hail in Okotoks and a small tornado near Ponoka, Alta. While most of the damages occurred in Alberta, claims were also reported in Saskatchewan and Manitoba, IBC said in a press release.

“Storms like this bring the message home that we are seeing more extreme weather events and resulting damage to property,” noted Bill Adams, vice president, Western and Pacific, IBC.

Earlier this week, PCS Canada reported that “a storm event with flooding, hail and wind from June 28 to June 30 in Alberta” cost an estimated $70.44 million in insured property damage. A catastrophe bulletin from PCS Canada said that the average claim payment for personal lines was $8,192, $10,466 for commercial and $6,058 for auto, with a total average claim payment of $7,493.

PCS Canada said that the majority of claims were the result of hail damage to vehicles, residences and commercial buildings. The company also estimated loss adjustment expenses of about $4.5 million, which is not included in the estimate of insured damages.


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