On August 5, 2024, Calgary experienced one of the most severe hailstorms in its history, which resulted in estimated insured losses of $2.1 bn (C$2.8 bn), according to the Insurance Bureau of Canada (IBC).
Hailstones pummeled homes, vehicles, and even the Calgary International Airport, damaging planes and causing significant disruption to flights. The storm, fueled by a supercell weather system, brought not only hail but also strong winds and heavy rainfall, leading to localized flooding in parts of the city.
This storm caused the second-largest insured loss for Canadian insurers, following the 2016 Fort McMurray wildfire, which resulted in $2.7 bn (C$3.7 bn) in losses. Nearly 20% of homes in Calgary were affected.
The combined losses from the hailstorm and wildfires that started on July 22 in Jasper, also in Alberta, are expected to cost insurers in the province around $2.7 bn (C$3.6 bn). Insurers have processed 130,000 claims related to the hailstorm alone.
The storm generated damaging hail, strong winds, heavy rain, and localized flooding in parts of Calgary, as noted by the IBC. This year, catastrophic weather has severely impacted the province, with the hailstorm causing unprecedented damage to Calgary residents.
In July and August alone, property and casualty insurers received around 228,000 claims related to four major catastrophes, a 42.5% increase from all of 2023, according to the IBC.
Settling claims from historic rain, flood events in Toronto and Montreal, and wildfires and hail in Alberta will take time.
Previously, insurers in Calgary incurred over $880mn (C$1.2bn) in losses from a 2020 hailstorm and $514mn (C$700mn) from a 2021 storm, but these are eclipsed by the August 5 event.
Given the increasing frequency of such storms, it is essential for governments to reinvest in programs like the municipal Resilient Roofing Rebate Program to help bolster the resilience of homes and businesses against future hail events.
Craig Stewart, IBC’s VP of Climate Change and Federal Issues, highlighted that insurers paid more for this hailstorm than the federal government has invested in climate adaptation over the past decade.
Insurers paid out more in claims for this one hail event than the federal government has invested on climate adaptation over the past decade
Craig Stewart, IBC Climate Change and Federal Issues Vice President
Stewart also advocated for improved hail alerts, safer parking, stronger building codes with hail-resistant materials, and provincial and federal retrofit programs to build resilience for the future.
“The surging frequency and severity of floods, wildfires, hail and windstorms represent an escalating threat to lives and property across Canada, yet governments have been vexingly slow to respond and have yet to enact the kinds of meaningful measures that would help Canadians prepare”, Craig Stewart said.
by Yana Keller
