According to initial estimates from the Insurance Bureau of Canada (IBC) and Catastrophe Indices and Quantification Inc. (CatIQ), the remnants of Hurricane Debby which hit Montreal and parts of Quebec on August 9 and 10, caused nearly $2.5-billion in insured damage.
“This flood event now ranks as the costliest insured event in Quebec’s history, even surpassing the 1998 ice storm,” they write.
Surge in claims
The surge in insurance claims related to flooded homes, businesses and vehicles, they add, coupled with labour shortages and continued strains in Canadian supply chains, will mean the claims process will take longer than usual.
“Canada's home, auto and business insurers are grappling with the most challenging summer on record for damage from severe weather events and natural disasters. The flooding in Toronto and other parts of southern Ontario, the Jasper wildfire, the Calgary hailstorm and flooding in regions of Quebec, have resulted in approximately 228,000 insurance claims,” the IBC states in an announcement about the initial estimates. “By comparison, last year, insurers reported 113,000 claims in July and August and 160,000 claims for the entire year amidst record-breaking wildfires across the country.”
National flood insurance program needed
The association also called on the government to advance work on a national flood insurance program, calling it the single most important step the federal government can take to better protect homeowners from the financial risks of climate change.
“Unless the federal government commits the necessary resources during the upcoming parliamentary session, with the backing of the provinces and territories, insurers will not be able to support the program before 2026,” warns Craig Stewart, vice president of climate change and federal issues with the IBC. “All orders of government must immediately stop building and rebuilding on flood plains and areas prone to wildfire, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to help fire- and flood-proof homes."
