Wildfire and flooding caused more than $490 mn CAD ($354 mn) in insured losses over a two-month period last year in Nova Scotia, according to AM Best research, a Catastrophe Indices and Quantification estimate.
CatIQ and the Insurance Bureau of Canada (IBC) reported that more than 88% of the 3,270 claims from the May 28-June 4, 2023, Tantallon wildfire and 90% of the 6,680 claims from the July 2023 atmospheric river flooding have been closed.
Homeowners bore most of the losses, with CatIQ estimating $240.7 mn CAD for the wildfire and $158.5 mn CAD for the flooding. Commercial lines carriers faced over $77 mn CAD in losses, while automobile insurers incurred less than $15 mn CAD.
The IBC and CatIQ highlighted external factors complicating claims responses, including a shortage of trained adjusters and increased demand for building materials due to global supply chain disruptions. Skilled trades were already occupied with repairs from Hurricane Fiona in September 2022 and other construction projects.
The timing of the flood, following the wildfire and Hurricane Fiona, strained local resources already engaged in recovery efforts.
These consecutive disasters emphasized the challenges of managing multiple crises and the need for comprehensive disaster preparedness and robust response strategies.
The Tantallon wildfire damaged or destroyed at least 200 properties, including 151 homes, and led to the evacuation of over 16,000 residents. It was one of more than 220 wildfires in the province, with a second fire destroying 60 residences.
The atmospheric river brought nearly eight inches of rain, mostly within 24 hours, significantly affecting Halifax, East Hants, West Hants, Lunenburg, and Queens, according to CatIQ and the IBC.
The bureau solicited feedback from groups involved in the claims process. Insurers focused on the availability of adjusters and said restoration companies were overwhelmed, leading to misplaced estimates and claim delays.
The IBC said brokers want better real-time communication to improve the response to future catastrophic events. Brokers felt that the ability to access claims notes would help better assist clients, although privacy concerns in sharing such data would have to be addressed.
