Alberta has experienced a disproportionate share of the extreme weather catastrophes in Canada over the past decade, causing insurers to question whether the province is a viable place to do business.
Posted on CanadianUnderwriter | By David Gambrill
Storms, hurricanes and floods driven in part by climate change will cost the federal disaster fund $902 million a year over the next five years, well above past averages, the parliamentary budget officer predicted Thursday.
The question was raised Friday at the C4 conference in Ottawa, where a conference panel discussed why the province’s average home insurance premium soared from $500 to $1,500 over the past decade.
“Is Alberta viable as a place to do business of insurance? Is it possible to get the rates adequate? Is it sustainable?”
Joel Baker, president and CEO of MSA Research
Panelists observed that severe weather events arising from climate change, in addition to a major population boom in the province, have resulted in the Canadian property and casualty insurance industry paying out major losses occurring in the province.
Of the approximately $9 billion that the P&C industry paid out in catastrophe claims over the past nine years, 63% of those losses have happened in Alberta.
Governments may need to accept more exposure than they have in the past, likely in the form of more taxpayer funds for disaster assistance programs.
Read entire article Is storm-ravaged Alberta insurable? | CanadianUnderwriter