A severe thunderstorm that travelled 420 kilometres through three provinces caused more than $235 million in damages, an insurance report says. The Insurance Bureau of Canada (IBC) released data of the storm system that hit Alberta, Saskatchewan and Manitoba on Aug. 20 and 21. Of those provinces, Alberta received most of the damage, IBC said. “Many people in the path of this devastating storm had their lives disrupted and property damaged,” said Aaron Sutherland, Pacific and Western vice-president with IBC, in a news release. “Insurers continue to help residents and businesses recover and rebuild from this storm, and ensure every claim is resolved.” A significant portion of the damage from the storm was inflicted on vehicles, IBC said. Unfortunately, the current system for auto insurance is “not sustainable,” the company says. “Auto insurance premiums in Alberta are now far below the cost of providing auto insurance coverage, with auto insurers paying out $1.20 in claims and expenses for every $1 they earned in premiums in 2024,” officials said. This means many insurance providers are ceasing auto coverage. “After three years of government rate caps, competition is under strain and consumers are having challenges securing the coverage they need,” Sutherland said. “The government must remove the rate cap and ensure the Care-First reforms are implemented effectively – especially by reining in out-of-control legal costs. By successfully navigating these final challenges, the provincial government can deliver a better, more affordable auto insurance system for Albertans in 2027.” IBC says the summer was “an eventful weather season,” where wildfires and hailstorms led to $725 million in insured damage. Other damaging storms include the July 13 hailstorm in Calgary ($164 million) and wildfires in Saskatchewan and Manitoba ($360 million).
