March Storm in Eastern Canada Cost Insurers C$50 Million

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A storm that moved across eastern Canada from March 26-29 brought heavy rain and strong winds, causing C$50 million (US$41.5 million) in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ).

Damage reports spanned the region – from flooded basements in southern Ontario to roofs torn off homes in western Newfoundland and Labrador.

Insured damage claims caused by March 26–29 storm follow here by province:

Ontario: C$19 million
Quebec: C$21 million
New Brunswick: C$1 million
Nova Scotia: C$7 million
Newfoundland and Labrador: C$2 million

“Insured losses related to natural catastrophic events averaged C$2 billion [US$1.7 billion] per year between 2009 and 2020, compared with an average of C$422 million [US$350.3 million] per year in the 1983 to 2008 period,” commented Craig Stewart, vice-president, Federal Affairs, Insurance Bureau of Canada (IBC).

“Last year alone, these losses were C$2.4 billion [$2 billion]. That’s more than a four-fold increase in such losses caused by severe weather events, which are increasingly attributed to climate change,” he added.

Severe weather across Canada continues to highlight the financial costs of a changing climate paid by insurers and taxpayers, said the IBC in a statement.

Canadians are experiencing accelerating financial losses from the changing climate, said the IBC, noting that in 2020, the federal government created the Task Force on High-Risk Residential Flood Insurance and Strategic Relocation.

However, the IBC said this currently is a standalone effort. “IBC believes it should be part of a larger climate adaptation plan that coordinates action by governments and the private sector to address the growing physical risks of climate change,” the association said.

The IBC is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P/C) insurance market in Canada.

Source: Insurance Bureau of Canada (IBC)

Topics Carriers Windstorm Canada

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