Insured losses from the July 13 hailstorm in Calgary have climbed to $164 million, almost double the original estimate of $92 million, according to updated figures from Catastrophe Indices and Quantification Inc. (CatIQ).
The 78% increase was driven largely by higher commercial claims, though more than half of the overall damage came from vehicles.
“It’s been another catastrophic year for hailstorms in Alberta,” said Aaron Sutherland, vice-president for the Pacific and Western region at the Insurance Bureau of Canada (IBC). “Alberta has now experienced at least one major hailstorm every year for the past two decades – including last year’s record $3.2 billion hailstorm that hit Calgary.” Cumulative insured damage from hail in the province now exceeds $10 billion, with $6 billion recorded in just the past five years.
The July storm was followed by another severe hail event in Brooks on August 20, with initial loss estimates expected in the coming weeks. Sutherland said claims from both storms will take time to resolve, noting high demand for contractors, auto body shops and replacement vehicles will add further cost pressures.
Auto insurance under strain
The latest hail losses add to Alberta’s already strained auto insurance market, where vehicle damage represented a significant portion of claims. In 2024, insurers paid out $1.20 in claims and expenses for every $1 in premiums earned. For the past three years, the provincial government has capped or frozen auto insurance rates, making Alberta the most heavily regulated auto market in Canada.
Lawmakers have introduced Care-First reforms aimed at transitioning to a no-fault system by 2027, but insurers warn the current cap has left premiums well below the cost of coverage and has driven some carriers to exit the province. “Consumers are feeling the impact of an auto insurance system in crisis,” said Sutherland. “Some are already struggling to secure coverage, and without action, the options will only shrink.”
Broader market pressures
The Alberta hailstorms come on top of a string of severe weather events across Canada that have added billions to insurers’ balance sheets in recent years. In 2023, wildfires in British Columbia and the Northwest Territories caused insured losses of more than $1 billion, while flooding in Quebec and Atlantic Canada has repeatedly driven up claims costs. Industry leaders have warned that severe weather is no longer sporadic but a recurring financial burden, pushing up claims while governments keep pressure on pricing.
Insurers continue to press governments to adopt stronger climate resilience measures, including mandating hail-resistant construction materials in high-risk areas, reviving Calgary’s Resilient Roofing Rebate Program, and improving storm alert systems so residents can move vehicles out of harm’s way.
