Canadian provinces of British Columbia, Quebec, Ontario, and the Canadian Maritimes were hit with severe floods after persistent, heavy rainfall combined with snowmelt, causing rivers and lakes in the region to swell.
Losses are expected to be felt in the millions of dollars (USD), but it’s too early to call industry losses with damage surveys still ongoing, and water levels only recently falling.
According to the Insurance Bureau of Canada (IBC), in the last couple of years, flood peril has surpassed fire to become the leading cause of home insurance payouts in the region.
In June 2013, Calgary floods cost $5.2 billion in economic losses, and $1.7 billion in insured losses, while July 2013 Toronto floods cost $1.7 billion in economic, and $860 million insured losses.
These high loss figures for flood events throughout Canada from previous years, suggest the industry could be struck with heavy losses from the recent flooding, although it’s too preliminary to make direct comparisons.
Reinsurance News will provide updates as further information on the floods’ economic and re/insurance industry loss impact is gathered.
