Some big third-quarter numbers for Intact Insurance on catastrophic losses has spurred a call for better infrastructure, better preventive measures to mitigate the damage from future weather-related damage.
“While I am impressed with the extraordinary effort and response of our people, it has become clear that we must adapt our homes, cities and infrastructure to today's changing weather patterns,” says Jean-Francois Blais, the president of Intact Insurance. “By offering sustainable and viable protection and promoting greater customer awareness of available prevention measures, we can ensure that our communities are safe, resilient and strong.”
Intact Financial Corporation announced estimated third-quarter catastrophe losses, net of reinsurance, of 2013 of $270 million ($199 million after tax or $1.51 per share).
The company's current estimate of losses for the summer losses is largely unchanged from the July 22 estimates; however, subsequent catastrophes added to the total estimated loss.
Altogether, 10 events led to the catastrophe losses in the quarter, including hail storms in Alberta and rain storms in Ontario and Quebec.
“This summer's events have taken an emotional toll and caused considerable disruption to thousands of Canadians from coast-to-coast,” added Blais, who heads up the largest provider of property and casualty insurance in Canada.
Weather has played an increasing role in the growth of payouts. Just recently, the consumer association Option consommateurs obtained a tentative settlement of $52.5 million in a class action suit on behalf of two million homeowners who were affected by the Quebec ice storm of 1998.
The June flooding in Alberta is estimated by A.M. Best to have cost insurers upwards of $3.75 billion.
According to A.M. Best’s special report on the Canadian market, P&C insurers’ operating and underwriting performance was strong in 2012, but results for this year will be impacted by the catastrophic losses and changing regulatory environment.
The report showed that 2012 was the fourth consecutive year that the combined ratio improved (from 99.1 in 2011 to 96.2 in 2012) and net premiums written (NPW) increased (from $36.4 billion in 2011 to $37.8 billion in 2012), as net premiums earned also increased 4.3 per cent to $37.3 billion from $35.7 billion in 2011.
