Insurance companies paid out a record $3.2 billion in 2013 as a series of natural disasters hit the country, according to the insurance industry association.
The record-breaking payout for 2013 followed four straight years of insurance payouts totalling at least $1 billion, the Insurance Bureau of Canada said Monday.
Last year’s costliest natural disaster, and Canada’s costliest ever, was the flooding in southern Alberta in June, which led to $1.74 billion in payouts, according to the IBC.
Other weather events that led to high insurance payouts included:
*Flooding that hit Toronto in July resulted in $940 million in damages, the most expensive natural disaster for insurance claims in Ontario’s history.
*Ice storms that hit Ontario and eastern Canada in December led to $200 million in insurance claims for homes damaged by fallen trees. Another $25 million was paid out in Ontario for cars that sustained damage in the storm.
*Thunderstorms that hit Quebec and Ontario in June led to $50 million in claims, while a second wave of thunderstorms in July led to another $200 million in claims.
“Canadian communities are seeing more severe weather, especially more intense rainfall. This overburdens our sewer and stormwater infrastructure, resulting in more sewer backups in homes and businesses,” Don Forgeron, president and CEO of the IBC, said in a statement.
Forgeron praised insurers for “responding quickly” in the wake of the disasters despite “record losses.”
Bill Adams, vice-president of the western and Pacific region for the IBC, said as rebuilding from the devastating flooding in Alberta is expected to continue “for some time to come…our industry will continue to be there to fulfil its important role.”
The statement from IBC said the insurance industry is looking at new ways to not only help victims cope with natural disasters, but to develop ways to minimize their impact.
For example, IBC recently unveiled a new predictive tool that helps municipalities find vulnerable parts of their stormwater and sewer infrastructure that could lead to sewer backups that damage homes and businesses.
The tool looks at infrastructure, climate data and past insurance claims so municipal engineers can identify infrastructure problems that need to be addressed immediately, in 2020 and as far ahead as 2050. The tool is being tested in a pilot project in three municipalities: Coquitlam, B.C., Fredericton, N.B., and Hamilton, Ont.
“Property and casualty insurers are collaborating with all three levels of government to help Canadians adapt to these new weather realities,” Forgeron said.
