Toronto, Ontario — Canada’s home, auto and business insurers are reporting the most challenging summer on record for damage from weather events and natural disasters, according to the Insurance Bureau of Canada (IBC).
Four major catastrophes were contributing to approximately 228,000 insurance claims this past summer, says IBC: flooding in Toronto and southern Ontario; the Jasper wildfire; the Calgary hailstorm and flooding in Quebec. These four catastrophes all happened within 24 days, adding strain to adjuster capacity.
In comparison, insurers reported 113,000 claims in July and August 2023 and 160,000 claims for the entire year. The 228,000 claims reported to IBC this year represent a 406 percent increase compared to the previous 20-year average, according to IBC.
“This summer has been the most challenging in history for the hundreds of thousands of Canadians across the country who were impacted by these storms and wildfires,” said Celyeste Power, President and CEO, IBC. “These four catastrophic weather events, which occurred over four weeks this summer, have resulted in more claims in one summer than insurers have reported in any summer over the last 20 years.
“While insurers continue to assist their customers with financial support, the sheer volume of claims, coupled with skilled labour shortages and continued strains in Canada’s supply chain, means that the claims process will take time,” concluded Power.
IBC also said the “surging frequency and severity of damaging weather events and natural disasters…represent an escalating threat to lives and property across Canada.”
Severe weather caused more than $3.1 billion in insured damages across Canada. With more than double the claims experienced this summer in comparison to 2023, IBC says “2024 is shaping up to be another costly year.”
Insured losses related to severe weather in Canada now routinely exceed $2 billion annually. By comparison, between 2001 and 2010, Canadian insurers averaged $701 million a year in severe weather-related losses.
The post On the Rise: Summer 2024 severe weather results in 228,000 claims; a 406 percent increase compared to previous 20-year average, says IBC appeared first on Collision Repair Magazine.
