The Insurance Bureau of Canada has released new estimates from Catastrophe Indices and Quantification Inc. (CatIQ), reflecting updated damage information regarding the November 2021 floods in British Columbia, and the May 21, 2022 derecho affecting Ontario and Quebec.
According to the IBC, the November floods were the most costly severe weather event in that province’s history. Although business claims where commercial insurance was more readily available were responsible for the majority of the reported increased costs, in contrast, they add that many affected residents were located in high-risk flood areas and floodplains where residential flood insurance coverage is not available. “As a result, it is expected that the cost to all levels of government from these events will total well into the billions of dollars,” the IBC writes in a statement. “It is clear that the overwhelming majority of costs for this disaster will be borne by government,” adds IBC’s vice president, Aaron Sutherland.
All told, the floods in southern British Columbia are now estimated to have caused $675-million in insured damage, up from previous estimates of $515-million.
In Ontario, meanwhile, initial estimates suggest the May 21 derecho storm in Quebec and Ontario – the sixth largest insured loss event in Canadian history – caused more than $875-million in insured damages, surpassing those caused when Toronto flooded in 2005. Broken down, the storm is estimated to have caused over $720-million in damages in Ontario and $155-million in damages in Quebec.
