Hurricane Debby caused $2.5bn in insured damage in Quebec: CatIQ

According to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ), the remnants of Hurricane Debby, which hit southern Quebec on August 9-10, caused nearly $2.5 billion in insured damage, making it the costliest event in Quebec’s history.

Johanne Lamanque, Vice-President, Quebec at Insurance Bureau of Canada (IBC), stated, “The record-breaking downpour caused by the remnants of Hurricane Debby has led to a surge in insurance claims related to flooded homes, businesses and vehicles.”

Lamanque added, ”From the very beginning of this crisis, insurers deployed extraordinary measures to respond as quickly as possible to their clients’ need for financial support.”

The IBC reported that Canada’s home, auto, and business insurers are dealing with one of the toughest summers ever due to severe weather and natural disasters.

Events like flooding in Toronto and southern Ontario, the Jasper wildfire, the Calgary hailstorm, and flooding in parts of Quebec, have resulted in around 228,000 insurance claims. For comparison, last year saw 113,000 claims in July and August, and 160,000 for the entire year, mostly due to record wildfires across the country.

The insurance industry is working on the ground in Quebec, Ontario, and Alberta, helping customers recover and rebuild.

Craig Stewart, Vice-President, Climate Change and Federal Issues at IBC, noted, “Insurers are paying out more in claims for the Quebec flood event than the federal government has invested on climate adaptation over the past decade.”

He continued, “Launching the promised National Flood Insurance Program is the single most-important step the federal government can take to better protect homeowners from the financial risks of climate change. Unless the federal government commits the necessary resources during the upcoming parliamentary session, with the backing of the provinces and territories, insurers will not be able to support the program before 2026. All orders of government must immediately stop building and rebuilding on flood plains and areas prone to wildfire, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to help fire- and flood-proof homes.”

The IBC emphasised that Insured losses from severe weather in Canada now routinely exceed $2 billion a year. In contrast, between 2001 and 2010, the average annual payout for severe weather claims was $701 million.

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