The July 13 hailstorm in Calgary caused an estimated $92mn in insured losses, according to preliminary data from Catastrophe Indices and Quantification Inc. (CatIQ). Vehicle damage accounted for 65% of all claims.
This brings Alberta’s five-year total for insured hail losses to $6bn. The scale of repeated hail damage in Alberta is unsustainable
Aaron Sutherland, VP, Pacific and Western, Insurance Bureau of Canada (IBC)
“Premiums will continue to rise unless governments act to improve resilience and reduce exposure,” said Aaron Sutherland.
Sutherland called for stricter building codes, support for retrofits, and better risk mapping and warning systems. He urged a coordinated national strategy to protect against future losses, especially in areas like Calgary’s “Hail Alley,” which consistently sees high-frequency storm activity.
Last month marked the one-year anniversary of the August 5, 2024, Calgary hailstorm, which caused $3.2bn in insured losses—the most expensive hailstorm and second-costliest natural catastrophe in Canadian history.
Over the past 20 years, Alberta has been hit by at least one major hailstorm annually. The cumulative insured losses from these events now exceed $11bn, with over half occurring since 2020.
“These aren’t random weather events,” said Sutherland. “They reflect a recurring pattern that should drive public policy.”
IBC continues to press governments to act on resilience, particularly in hail-prone regions.
In Calgary, the recommendations include:
- Reinstating the Resilient Roofing Rebate Program to subsidize hail-resistant materials
- Mandating hail-resistant roofing and siding in high-risk zones
- Enhancing real-time storm alert systems to help residents move vehicles and minimize damage
Vehicle damage from the July storm further stressed Alberta’s auto insurance system. For 2024, insurers paid out $1.20 in claims and expenses for every $1 in premiums earned—a result of the province’s ongoing cap on premium increases.
The Alberta government has frozen or limited auto rate increases for three years, despite rising claim costs. Sutherland said this has left insurers unable to operate sustainably, forcing some to reduce availability of coverage.
Alberta’s auto insurance system is in crisis. The rate cap must be lifted. Without reform, the government’s Care-First initiative is at risk of failure.
IBC urged the government to fully implement its promised legal cost controls under the Care-First framework, warning that consumers face limited coverage options and increased frustration if the current path continues.
