Severe Weather Trends in Alberta: What Does 2021 Have In Store For Us? - 2021 Emergency Management Stakeholder Summit
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Severe Weather Trends in Alberta:
What Does 2021 Have In Store For Us?
2021 Emergency Management Stakeholder Summit
ROB DE PRUIS
Director, Consumer & Industry Relations
Western, IBC
About Insurance Bureau of Canada
National association for Canada’s
private home, auto, business insurers
ESTABLISHED
IBC members represent approximately
IN 1964 90% of the Canadian P&C market
2
Alberta’s Property & Casualty Industry at a Glance
The P&C insurance network supports 15,445 jobs in Alberta: with 10,842 employed
directly and over 4,500 employed indirectly related to the industry.
P&C Insurers paid $421 million in premium taxes and $141 million in health care
levies.
$ Insurers contributed $1.2 billion to Alberta’s GDP.
Alberta severe weather costs in 2020 exceeded $2 billion.
*Tax figures as of 2019
3
Natural Catastrophes
& Severe Weather
We are seeing an increase in the severity and frequency of
severe weather events - many of which have affected Alberta
directly.
4
Costs of Catastrophic Losses have Risen Steadily: Canada
*A catastrophic loss = 1 event costing $25 million or more in insured damages
$ Billion 2009 ‐ 2020: $1.96 billion average
5.5
5.0 LOSS + LOSS ADJUSTMENT EXPENSES
4.5 ESTIMATED TREND
4.0
3.5
1983 ‐2008: $425 million average
3.0
2.4B
2.5
2.0
1.5
1.0
0.5
0.0
Source: IBC Facts Book, PCS, CatIQ, Swiss Re, Munich Re & Deloitte
Values in 2020$ CAN, 2020 preliminary
5
Costs of Catastrophic Losses in Alberta
$BILLION
5
Insured Damage
4.5
4 LOSS + LOSS ADJUSTMENT EXPENSES
INSURERS
ESTIMATED TREND
3.5
3
2.5
2
1.5
1
0.5
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: IBC Facts Book, PCS, CatIQ, Swiss Re, Munich Re & Deloitte
Values in 2020$ CAN, 2020 preliminary
6
Frequency of Catastrophic Losses have Increased: Canada
102 catastrophes
Number of Events
(36 water related)
100.0
80.0
47 catastrophes
(25 water related)
60.0
33 catastrophes
(15 water related)
40.0
14 catastrophes
(6 water related)
20.0
0.0
1983 to 1990 1991 to 2000 2001 to 2010 2011 to 2020
Source: 1983 to 2007: IBC, PCS Canada, Swiss Re and Deloitte
Source 2008 -2020: CatIQ
Events included when 2008 $ 25 million limit adjusted by GDP, Population
Perils: Flood, Water, Rain, Storm, Snow, Ice, Hail, Wind, Tornado, Hurricane
7
Canada’s Costliest
Insured Wildfire
2016 Northern Alberta Fires
Affected: Regional Municipality of Wood Buffalo
Insured damage: $3.8 Billion
Note: This was the costliest insured damage event
in Canadian history.
8
Canada’s Costliest Insured
Overland Flood Event
2013 Southern Alberta Floods
Affected: Calgary, High River and surrounding area
Insured damage: $1.6 Billion
Note: This was the third costliest insured damage
event in Canadian history.
9
Canada’s Costliest
Insured Hailstorm
2020 Southern and Central Alberta Hailstorm
Affected: Calgary, Airdrie and surrounding area
Insured damage: $1.3 Billion
Note: This event was the fourth costliest insured
damage event in Canadian history.
10Top 10 Most Expensive Natural Disasters in Canada
4.0 • Of the 10 costliest natural disasters in
3.5 Canadian history, 6 have occurred in
3.0 Alberta.
• 7 of the costliest disasters in history have
$ Billion
2.5
happened since 2010
2.0
1.5
1.0
0.5
0.0
Loss & Loss Adjustment Expenses
Source: IBC Facts Book, PCS, CatIQ, Swiss Re, Munich Re & Deloitte
Values in 2020 $ CAN 112021 to Date
Windstorms in Western Canada
have already caused $134 Million in
insured damage.
A January 12-14 storm brought
intense winds across British
Columbia, Alberta, and
Saskatchewan
Snow squalls west of Calgary and
impacting Edmonton on January 19-
20 came with wind gusts measuring
in at 193 km/h.
12What to Expect in 2021
Alberta has been a hot spot for a
growing number of severe weather
events.
Our province has seen extreme fire,
hail, wind and flood events. We
could experience any of these in
2021.
Albertans need to prepare for
tomorrow’s potential severe weather
events, today.
13Factors Affecting Insurance: Flooding
Severe weather and flooding are of particular concern
to many areas across the country.
Organizations including climatedata.ca employ
models indicating precipitation is on the rise in many
regions of Canada.
14Assessing Risk: Flood Mapping
15Water Risks to Homes
16Flooding: Anatomy of a Sewer Back-Up
20%
OF CANADIAN
11%
OF CANADIAN
HOUSEHOLDS HOUSEHOLDS
ARE NOW A R E AT
VULNERABLE HIGH RISK OF
TO FLOODS FLOODING
18Residential Flood Insurance
In 2015, in response to the Calgary
floods, the insurance industry started
offering overland flood insurance for
residences.
Flood insurance is becoming more common.
IBC’s flood survey determined:
• An estimated 13 insurers are now in the
market.
• Among survey participants: 4% of Alberta’s
properties are not eligible for flood
coverage. (Compared to 7% in Canada)
• Percentage of residential policyholders with
flood coverage in Alberta is 52%
19The insurance industry has put resources into research and
making recommendations for ways to manage flood risk.
20Collaborative Approach
Climate
Risk
Provide the Educated on
right risks to help
products for improve their
consumers own resilience
Insurers Residents
and Stakeholders
Make
necessary
systemic
changes to
reduce risk Government
21National Action Plan on Flood
Our National Action Plan on Flood focuses on:
Education
1 Invest in launching a robust consumer flood portal based on accurate flood
mapping and reliable information.
Relocation and Protection
2 Move homes away from areas that repeatedly flood. Develop affordable
insurance protection for properties in high-risk flood zones.
Amended Land-Use Rules
3 Going forward, no home built on a flood plain should be eligible for
disaster assistance or affordable insurance, and provincial and municipal
governments should adopt improved building codes and standards.
22Recommendations
In line with the action plan, IBC has requested that government:
1 Improve access to updated flood maps
2 Infrastructure investment and mitigation to increase resiliency
3 Consider relocation/strategic retreat/buyouts as an
appropriate response
4
Support the creation of a high-risk pool to provide insurance
coverage for high risk properties
23IBC’s Consumer Information Centre
People who have questions about insurance can
contact our Consumer Information Centre
Consumer Information ibc.ca
Centre askibcwest@ibc.ca
Toll-free: 1-844-2ask-IBC @IBC_West
1-844-227-5422
24Thank You
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