Insurers have now made progress over the past six months in assisting residents affected by Calgary’s hailstorm last August with their recovery and rebuilding efforts, the Insurance Bureau Canada reported.
The Catastrophe Indices and Quantification Inc. (CatIQ) previously reported that the estimated insured losses from the hailstorm have risen to $3.25 billion, with the hailstorm becoming the second-costliest disaster in Canadian history for insured losses and resulted in more than 130,000 insurance claims.
According to IBC, auto insurance claims, which account for more than half of all claims from the hailstorm, have been largely settled. Insurers in Alberta brought in adjusters from across the province to expedite vehicle assessments and repairs. Total insured damage to vehicles is estimated at nearly $1 billion. Approximately half of the damaged vehicles were deemed total losses, leading customers to opt for cash settlements instead of repairs.
Nearly 60,000 homes in the Calgary area sustained damage. The availability of building supplies and contractor services has been affected by the scale of the event, but insurers continue to work with policyholders to complete repairs. Most repairs are expected to be finalized in the spring and summer.
“Impacted customers have seen progress on their insurance claims following last summer’s hailstorm, but there’s still a lot of work to do as repairing damaged homes and businesses on a scale this large will take time,” said Aaron Sutherland, vice-president, Pacific and Western, IBC. “The people of Calgary have shown tremendous resilience, and Alberta’s insurers will continue to match that spirit and support their customers every step of the way.”
The August 5 hailstorm primarily affected northern Calgary. A report from global risk-modelling firm Aon highlighted the region's increasing risk of hail events. The report noted that urban development in Calgary has expanded significantly in recent decades, with new residential, commercial, and industrial properties, including the Calgary International Airport.
The report also stated that if a similar storm had occurred 40 years ago, it would have primarily impacted agricultural land. The same area of north Calgary experienced a hailstorm in June 2020, resulting in $1.2 billion in insured losses.
Last summer was Canada’s costliest on record for catastrophic weather events, with 228,000 insurance claims and over $8 billion in insured damage. Alberta accounted for $4.1 billion of this total, contributing to rising insurance costs in the province and across the country. These events highlight the need for greater investment in resilience measures to protect communities from severe weather.
Canada’s insurers have been urging governments for more than a decade to invest in disaster resilience. This includes updating building codes to require weather-resistant materials, such as hail-resistant roofing and siding, in high-risk areas. Other measures include helping homeowners understand their exposure to extreme weather, financing retrofits to reduce risks, and improving emergency preparedness and disaster response.
“We are seeing more of these events, in both frequency and severity,” said Sutherland. “When homeowners repair or replace roofing, there are impact-resistant products available that can help reduce or eliminate the chance of future loss or damage from another hailstorm.”
