July 3, 2013 by Canadian Underwriter
Restoration costs for the city of Calgary following June’s severe flooding could be more than $256 million according to one report, while total economic damage from the events across Alberta could be as much as $5 billion.
The Calgary Herald reported Wednesday that costs for the city are estimated at $256.6 million, as the flooding had a major impact on the city zoo, police vehicles, bridges, the public library and transit, among other severe damages.
In a weekly catastrophe recap report, Aon Benfield reported that total economic damage from the flooding across Alberta is likely to range between $3 billion and $5 billion, based on an analysis from BMO Capital Markets.
That’s a loss about 20 to 30 times higher than losses from a major flood event in the province in 2005, Aon Benfield’s report said.
BMO also suggested that the insured impact from the events could be between $2.25 billion and $3.75 billion, Aon’s report noted.
“Some economists believe that the floods could translate into as much as $2 billion in lost economic output in Canada,” the report said. “It is expected that the flood’s toll could shave off 0.3% from June’s GDP and 0.1% from July’s GDP.”
— Calgary Herald (@calgaryherald) July 3, 2013
Rating agency A.M. Best also noted that “the relative scarcity of property coverage for flooding in Canada is likely to keep claims well below the total economic loss, in the range of $1 billion to $3.75 billion. Still, this event appears likely to rank among Canada’s largest catastrophe losses.”