Severe weather events across Canada show governments must do more to help
Canadians prepare and recover
TORONTO, Aug. 19,
2024 /CNW/ - Intense flash flooding that occurred in
Toronto and other parts of
southern Ontario between
July 15-16, 2024, is estimated to
have caused over $940 million in
insured damage, according to initial estimates from Catastrophe
Indices and Quantification Inc. (CatIQ).
"The insurance industry has long warned that severe weather
events are becoming more frequent and intense. This summer is,
unfortunately, proving that statement is correct," said
Amanda Dean, Vice-President,
Ontario and Atlantic, Insurance
Bureau of Canada (IBC). "This
summer, Canada's insurers have
been simultaneously supporting customers impacted by the
Toronto floods, the Calgary hailstorm, the Jasper wildfire and
flooding across Quebec. The
insurance industry is on the ground in Ontario, Alberta and Quebec, assisting customers as they put their
lives back together. The emotional distress that these events have
caused thousands of Canadians cannot be overlooked."
The insurance industry is also in the early stages of responding
to flooding that occurred in Toronto and Montreal just this past weekend. Insurers will
also be there for the customers impacted by the tornado that
touched down in Ayr, Ontario, on
the weekend.
These simultaneous events have placed immense pressure on
insurance adjuster resources for many insurers. IBC is working with
governments and regulators across the country to address adjuster
capacity across Canada. Adjuster
access is critical following natural catastrophes, as they ensure
the industry can support consumers as quickly as possible.
"With several large natural disasters in the span of one month,
including another round of torrential downpours in the Greater Toronto Area over the weekend, coupled
with skilled labour shortages and supply chain issues, we are
urging affected customers to be patient. Rebuilding will take
time," said Craig Stewart,
Vice-President, Climate Change and Federal Issues, IBC. "IBC and
its members are calling on governments to improve disaster
preparedness and recovery across the country."
"Unless the federal government commits the necessary resources
this fall to stand up the National Flood Insurance Program while
Provinces and Territories commit to mitigating flood risk, insurers
will not be able to support the program before the next federal
election. This is the single, most-important step the government
can take to better protect homeowners from the financial risks of
climate change," Stewart continued. "Governments have to make the
hard choices to stop building and rebuilding on flood plains,
invest in disaster mitigation including upgrades to stormwater
infrastructure, and roll out programs to fire- and flood-proof
homes."
As reported by IBC earlier this year, severe weather in
2023 caused over $3.1 billion in
insured damage across Canada. IBC
is continuing to engage with the federal and provincial governments
on ways to improve the climate resilience of communities across the
country. Insured losses related to severe weather in Canada now routinely exceed $2 billion annually. By comparison, between 2001
and 2010, Canadian insurers averaged $675
million a year in losses related to severe weather.
The amount of insured damage is an estimate provided by CatIQ
(www.catiq.com) under licence to IBC.
About Insurance Bureau of Canada
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry
association representing Canada's
private home, auto and business insurers. Its member companies make
up the vast majority of Canada's
highly competitive property and casualty (P&C) insurance
market.
As the leading advocate for Canada's private P&C insurers, IBC
collaborates with governments, regulators and stakeholders to
support a competitive environment for the P&C insurance
industry to continue to help protect Canadians from the risks of
today and tomorrow.
IBC believes that Canadians value and deserve a responsive and
resilient private P&C insurance industry that provides
insurance solutions to both individuals and businesses.
For media releases, IN Focus articles, or to book an interview
with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X
and Instagram, and like us on Facebook. If you have a question
about home, auto or business insurance, contact IBC's Consumer
Information Centre at 1-844-2ask-IBC. We're here to help.
SOURCE Insurance Bureau of Canada