The Insurance Bureau of Canada (IBC) has published a retrospective look at the wildfires and flooding which devastated parts of Nova Scotia in 2023, on the heels of damages caused by Hurricane Fiona in September 2022.

“These sequential events posed significant challenges, particularly in the availability of resources to handle the large volume of insurance claims and the ongoing emergency response efforts,” the IBC states in the publication, One-Year Update Following 2023 Nova Scotia Wildfires and Flooding: Lessons learned will improve recovery from catastrophic events in the future. “These back-to-back disasters illuminated the cascading challenges of managing multiple crises in quick succession and underscored the pressing need for comprehensive disaster preparedness and robust response strategies.” 

Citing data from MSA Research, the report says at least 119 property and casualty (P&C) insurance companies were operating in 2023. “Five company groups represent roughly 50 per cent of the $2.1-billion market of total direct written premiums.”

One year after the Tantallon wildfire, they say the insurance sector recorded a total of 3,000 claims worth $247.5-million. The average claim cost for personal property was $81,000, commercial property claims averaged $37,200 and auto claims averaged $15,200. The industry’s personal property claims closure rate currently sits at 88 per cent.

During the same one-year period, insurers handled 6,680 flood-related claims worth $243.2-million. The average personal property damage claim due to flooding was lower at $29,375, while commercial property claims were notably higher at $127,254 on average. “The overall claims closure rate stands at 90 per cent, with personal property claims having a higher closure rate of 92 per cent,” they state.

The report looks at challenges in getting claims processed. These include scarcity of skilled labour, a shortage of building materials and a lack of adjuster capacity. Brokers have also called for better real-time communication. “Brokers felt that the ability to access claims notes would help better assist clients, although privacy concerns in sharing such data would have to be addressed,” the report states. Nova Scotia’s quick turnaround of licensing out-of-province adjusters was also noted and discussed.

“The report reinforces the insurance industry’s call for implementing a National Flood Insurance Program, for (the) development of a National Recovery Strategy and for all governments to collaborate with the private sector to meet the targets of Canada’s National Adaptation Strategy. The Nova Scotia floods and wildfires illustrate that we are not ready as a country to defend against severe weather escalating due to climate change,” the IBC concludes in a statement.