Insurance coverage trade losses from the extreme hailstorm that struck the Calgary space of Canada on August fifth 2024 is estimated to have reached CAD $3.25 billion, in line with CatIQ, Canada’s insured loss and publicity indices supplier.
This marks CatIQ’s fourth loss estimate from the occasion, and compares to its third loss estimate of $2.9 billion, which was issued 90 days after the occasion.
We also covered CatIQ’s first loss estimate from the hailstorm in September 2024, where losses had surpassed $2.8 billion, making it the second-largest insurance coverage trade loss occasion within the nation’s historical past.
CatIQ confirmed that its newest loss estimate covers property (each business and residential) and automobile (motor) claims together with further loss adjustment bills.
“Unstable atmospheric situations on 5 August 2024 noticed thunderstorms develop alongside the southern Alberta foothills and drift eastward with the prevailing winds. A number of of those discrete storm cells produced very massive hail, as much as the scale of baseballs in some circumstances. One such storm cell moved throughout northern Calgary and neighbouring Strathmore, inflicting vital harm to properties and companies. Hailstones punched holes in vinyl siding on properties, broke home windows, and severely broken roofs, together with that of the Calgary Worldwide Airport,” CatIQ commented.
Including: “Calgary has skilled a lot of extreme storms that includes in depth hail harm lately, with particularly extreme occasions in each 2020 and 2021 which collectively generated practically CAD 2,000 million in insured losses. Of notice is the truth that, whereas all three damaging storm cells impacted primarily residential areas, they every traversed completely different elements of town. Harm in 2020 occurred primarily within the northeast, the 2021 storm affected primarily the southern tier, and the 2024 storm impacted the northern a part of town.”
It’s additionally value highlighting, that of their $306 million reported disaster losses for August 2024, US primary insurer Allstate revealed that $75 million, or approximately 25% was related to the Calgary hailstorm.
Furthermore, CatIQ has confirmed {that a} fifth replace of the market loss from the hailstorm might be made out there on August fifth 2025, twelve months after the occasion begin date.
Laura Twidle, President and CEO of CatIQ, commented, “Whereas the storm itself was not unusually extreme for the area, the extent of the harm and the size of the trade loss complete replicate how the gap of some kilometres within the observe may end up in super loss variations in the case of extreme convective storm. There was nothing obvious in regards to the storm from a meteorological standpoint to recommend it might end in one of many costliest occasions in Canadian historical past.”
She continued: “The insurance industry experienced a record loss year in Canada in 2024 and, whereas nearly all of these losses stemmed from 4 occasions in July and August, of the yr’s twelve complete occasions, one quarter concerned hail harm – an essential reminder of the trade’s publicity to this peril. Prior to now 5 years, CatIQ has declared 30 catastrophes referring to hail with losses exceeding CAD 30 million, accounting collectively for greater than CAD 8,000 million in insured losses for the trade.”
