Richard Sine
Updated on: October 10, 2024 4:09 pm GMT
Calgary Hailstorm Causes Nearly $2.8 Billion in Insured Losses
On August 5, 2024, a devastating hailstorm hit Calgary, Alberta, bringing with it nearly $2.8 billion in insured damages, according to estimates from Catastrophe Indices and Quantification Inc. (CatIQ). This storm marks the second-costliest insured event in Canadian history, trailing only behind the 2016 Fort McMurray wildfire. As the country faces an unprecedented summer of severe weather, this incident has put additional pressure on insurance premiums across the region.
Details of the Disaster
What Happened
Severe thunderstorms that developed over southern Alberta wreaked havoc in Calgary and its surroundings. The storm produced colossal hailstones, some as large as chicken eggs, along with strong winds, heavy rainfall, and localized flooding. Environment and Climate Change Canada reported numerous incidents of damage to homes and vehicles, emphasizing the storm’s severity.
Impact on Residents
- Approximately 20% of homes in Calgary experienced damage from the hailstorm.
- Insurers are grappling with over 130,000 claims related to this storm alone.
- The damage covered includes hail and wind damage typically included in standard home and business insurance, as well as comprehensive auto policies.
Insurance and Economic Implications
Aaron Sutherland, Vice-President of Western and Pacific at the Insurance Bureau of Canada (IBC), stated, “Catastrophic weather has hit our province hard this year. The impact on Calgary residents from this summer’s hailstorm is unprecedented.” He noted that Alberta has borne witness to five of the top 10 costliest disasters in Canadian history, all of which have occurred since 2016. This increase in catastrophic events contributes to the rising insurance premiums that residents are likely to face.
Historical Context
In recent years, Calgary has faced multiple severe hailstorms, including significant events in 2020 and 2021 that incurred $1.2 billion and $700 million in insured losses, respectively. Experts are calling for proactive measures to bolster the city’s resilience against future storms.
Canada’s Broader Weather Challenges
High Costs of Severe Weather in 2024
2024 is shaping up to be an extremely costly year for insurance in Canada, with total natural catastrophe losses expected to exceed C$5.2 billion ($3.19 billion). After just half a year, insurers have already contended with a series of major weather events, including the Calgary hailstorm, the Jasper wildfires that caused over $880 million in insured damage, and severe flooding in Southern Ontario.
Post-Storm Actions
- Insurers are increasing their efforts to assist affected customers, focusing on repairs and financial support.
- Insurance claims have surged significantly, with data indicating a 406% increase compared to the previous 20-year average.
- Call for government investments in climate resilience programs to assist those impacted by weather-related disasters.
Call for Action
Need for Governmental Support
Experts emphasize that improved strategies and policies are needed to mitigate future catastrophic events. Craig Stewart, Vice-President of Climate Change and Federal Issues at IBC, noted that the cost of the recent hail event surpassed federal government investments in climate adaptation over the past decade. The increasing frequency and severity of catastrophic weather are escalating threats to lives and property across Canada, underscoring the urgent need for governmental intervention.
Recommendations for Resilience
Industry professionals are advocating for:
- Improved hail alert systems to notify residents of impending storms.
- Enhanced building codes that require hail-resistant materials in high-risk areas.
- Provincial and federal retrofit programs to help families enhance their homes and businesses against storm damage.
Recent Related Events
In addition to the Calgary hailstorm, the summer of 2024 has been marked by other significant weather-related disasters across Canada. Major flooding in Toronto during July and wildfires in Quebec have contributed to the record-high claims insurers are facing. Collectively, these events have added to the already substantial pressure on the insurance industry, highlighting the urgent necessity for systemic changes in how Canada prepares for and responds to severe weather.
Support Resources for Affected Individuals
Insurance Bureau of Canada Assistance
The Insurance Bureau of Canada is actively encouraging individuals with questions regarding insurance claims to reach out to their Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422). For those looking to protect their properties from potential hail damage, resources are available at Hail Smart.
Conclusion
The hailstorm in August was a strong reminder that bad weather is happening more often in Canada. Each year, the damage costs over $2 billion, which shows we need to change how we prepare for these storms. It’s important for governments, insurance companies, and people in the community to work together to keep everyone safe from future disasters.
