One year after a catastrophic hailstorm caused more than $3 billion in insured damage in Calgary, insurers are renewing calls for provincial and municipal governments to take stronger action to protect communities and fix Alberta’s struggling auto insurance system.The August 2024 storm, now the second-costliest natural disaster in Canadian history, devastated parts of Calgary with large hail, heavy rain, and strong winds. More than half of the 70,000 claims filed were for damaged vehicles, with auto-related costs alone reaching $1 billion.“Calgarians have shown tremendous resiliency over the past year, and insurers have worked tirelessly to help them recover,” said Aaron Sutherland, vice-president for the Pacific and Western regions at the Insurance Bureau of Canada (IBC). .“But the repeated hail damage should be a clear wake-up call to strengthen our resilience and adapt more effectively to our new weather reality.”Calgary lies in Canada’s “Hail Alley,” a region that has seen major hailstorms every year for two decades. Alberta has suffered over $10 billion in hail-related insured damage since 2003 — with $5.5 billion of that total in the last five years. Just last month, another severe hailstorm struck Calgary, causing more than $30 million in damage.IBC is urging governments to revive Calgary’s Resilient Roofing Rebate Program, mandate hail-resistant materials in new buildings, and improve hail warning systems to allow residents to better prepare.The group also raised alarm about the impact of extreme weather on Alberta’s already stretched auto insurance system. In 2024, insurers paid out $1.20 in claims and expenses for every $1 collected in premiums — a gap they say is unsustainable due to government rate caps that have been in place for three years..“Alberta’s auto insurance system is in crisis,” said Sutherland. “Unless rates reflect the real cost of coverage, insurers will continue to restrict the sale of policies, and drivers will face fewer options.”IBC said the government’s Care-First reforms to improve auto insurance could be jeopardized unless rate caps are removed and legal costs are controlled, as previously promised.At a national level, IBC called on the federal government to stop approving new construction in high-risk flood and wildfire zones, spend in vulnerable communities, and launch a federal emergency management agency — similar to those in other G7 nations — to coordinate disaster response and recovery.“Alberta is Canada’s hotspot for catastrophic weather events,” said Sutherland. “Without meaningful change, the pressure on communities, property, and the insurance system will only grow.”
