Insured Losses From Calgary Hailstorm Reach C$3.25B as 2nd Costliest Canada Disaster

The tally for Calgary’s record-breaking hailstorm last August continues to rise, with total insured losses now estimated to be C$3.25 billion (US$2.2 billion), according to the Insurance Bureau of Canada, quoting statistics issued by Catastrophe Indices and Quantification Inc. (CatIQ).

The storm is the second-costliest disaster in Canadian history for insured losses and resulted in more than 130,000 insurance claims.

The IBC went on to provide additional statistics and information about the hailstorm:

• The majority of auto insurance claims – which represent more than half of all claims from the hailstorm – have been completed. Alberta’s insurers brought in adjusters from across the province to help expedite vehicle assessments and repairs.
• Total insured damage to vehicles is now estimated to be nearly $1 billion. The damage was so extensive that roughly half of all vehicles damaged were total losses, meaning that the value of the vehicle was written off and customers opted for cash payouts in lieu of repairs.
• Nearly 60,000 homes in the Calgary area were affected. The availability of building supplies and repair contractor services in Calgary has been strained by the scale of the damage.

The August 5 hailstorm primarily affected northern parts of the city of Calgary, the IBC said, noting that a new report from Aon, the broker and risk modeling firm, highlights the growing risk of hail events facing the area.

The Aon report notes that areas of the city have seen “staggering urban development in recent decades,” including new residential neighborhoods, as well as new commercial and industrial properties, like the Calgary International Airport.

An analysis of the hailstorm footprint shows that if this hailstorm had occurred 40 years ago, it would have affected mostly agricultural land. In June 2020, the same area of north Calgary was hit by a hailstorm that resulted in $1.2 billion in insured losses, the IBC added.

The summer of 2024 now ranks as the most-destructive season in Canadian history for insured losses due to severe weather, with 228,000 insurance claims and over $8 billion in insured damage, the IBC said, adding that half of this damage – $4.1 billion – occurred in Alberta alone, which is placing pressure on insurance premiums.

The IBC said these events are important reminders of the need to increase investments in resilience and other measures to better protect communities from severe weather.

“We are seeing more of these events, in both frequency and severity,” according to Aaron Sutherland, vice-president, Pacific and Western, IBC. “When homeowners repair or replace roofing, there are impact resistant products available that can help reduce or eliminate the chance of future loss or damage from another hailstorm.”

IBC is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up the vast majority of the property/casualty insurance market in Canada. The amount of insured damage is an estimate provided by CatIQ under license to IBC.

Source: Insurance Bureau of Canada (IBC)

Topics Catastrophe Natural Disasters Profit Loss Canada