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Alberta floods costliest insured natural disaster in Canadian history: IBC


September 23, 2013   by Canadian Underwriter


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The Insurance Bureau of Canada (IBC) is reporting that insured property damage in the wake of the Alberta flooding this June is estimated to now exceed $1.7 billion, making the former the costliest insured natural disaster ever in Canada.

For more than a decade, the 1998 icestorm held the record as the country’s most expensive natural catastrophe. Insured losses have been estimated at about $1.3 billion (not adjusted for inflation) and approximately $1.5 billion (adjusted for inflation).

The preliminary figures reflect the latest estimate of insured losses calculated by Property Claim Services Canada (PCS-Canada), a service that investigates reported catastrophic events in Canada and determines the extent and type of damage, dates of occurrence and geographic areas affected.

Alberta FloodsTorrential rains hammered Alberta from June 20 to 24, claiming the lives of four people, forcing an estimated 100,000 individuals from their homes and prompting the Alberta government to declare a state of emergency for a number of communities in southern Alberta, IBC notes in a statement.

PCS-Canada reports that well in excess of 25,000 related claims have been filed following the floods. PCS-Canada will update both insured loss estimates and the number of claims in 60 days, the statement adds.

“It’s a staggering number that we expect will go even higher,” Bill Adams, IBC’s vice president, Western and Pacific, says of the $1.7 billion estimate. “While the monetary cost of the floods is huge, the emotional toll on Albertans is incalculable. Insurers and IBC are committed to helping Albertans through the claims process as they clean up and rebuild their lives and communities,” Adams adds.

Immediately after the flooding, IBC reports that some 5,000 insurance professionals deployed to focus on helping with the claims process. IBC and its members continue to advance claim requests as quickly as possible to ensure that policyholders can return to normal life.

In late August, Alberta finance minister Doug Horner echoed an earlier estimate from Premier Alison Redford that the costs associated with the severe flooding are approximately $5 billion. At that time, the provincial government had already allocated $704 million to residents, small business owners and communities for flood recovery.

“We’re certainly in for some challenges,” Horner said in a statement. “But with a solid commitment from the federal government for their contribution to support disaster recovery, and thanks to our strong economy and higher revenues in first quarter, we are in a good position to help get lives back to normal.”


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