Extreme weather is on the rise in Canada, and the impact on insurance is pervasive – 2013 saw record payouts of $3.2 billion, and some of the country’s biggest P&C insurers have had to raise premiums by 15-20% while also enacting stricter underwriting conditions.
As a result,
Geekquinox conducted an analysis of historical data to determine which major cities are most likely to experience inclement weather.
Their results are:
- Calgary – the 2013 flood was the worst on record, forcing 120,000 residents out of their home and incurring billions of dollars in damages. Researchers found that a flood of that magnitude or larger has a 30% chance of recurring by 2050.
- Winnipeg – in 2014, Winnipeg made headlines for experiencing the coldest winter on record since 1898. While some Winnipeg natives claim that they prefer the freezing, dry weather to damp and cold ones in Southern Ontario, the city has a history of reaching temperatures as low as those on Mars.
- Montreal – the years spanning 1998 and 2015 brought countless ice storms to the city, the severity of which hadn’t been seen for generations. In January of this year, 150,000 homes were left without electricity for days.
- Halifax – while hurricanes are uncommon in Canada, they do occasionally travel to Nova Scotian waters. Hurricane Juan in 2003, for example, caused extensive damage and 8 fatalities.
- St. John’s – while many Canadians at least partially accustomed to snow, the blizzards in St. John’s can be devastating. It receives 21 days of heavy snow every year, 10 of which bring over 10 centimeters to the Newfoundland city.
Brokers can use this information to start a dialogue with current and potential clients.
“With Canada seeing increasingly severe and changing weather patterns, it is crucial that consumers are well informed about their insurance needs. We encourage all cottage and home owners to ensure they have adequate coverage by speaking to their broker or directly with us,” said Wayne Ross, insurance and claims expert with
Aviva Canada.
