A July hailstorm that caused nearly $92 million in insured losses is the latest event driving up costs and tightening coverage in Alberta’s already strained insurance market.
Vehicles made up 65% of claims from the storm, according to preliminary estimates from Catastrophe Indices and Quantification Inc. (CatIQ), underscoring the mounting financial impact on both property and auto insurers.
Over the past five years, insured hail damage in Alberta has totalled $6 billion, part of more than $11 billion in losses since the early 2000s. The Insurance Bureau of Canada (IBC) said this level of repeated rebuilding is unsustainable and will keep pushing premiums higher unless governments and industry invest in prevention.
Aaron Sutherland, IBC’s vice-president for the Pacific and Western regions, said resilience measures must be a priority. IBC’s recommendations include stricter building codes, mandatory hail-resistant materials for new construction in high-risk zones, financial incentives for retrofits and better storm warning systems to give residents time to protect property.
The storm’s heavy toll on vehicles highlighted a growing challenge for Alberta’s auto insurance sector. For the past three years, the provincial government has frozen or capped premiums below the cost of providing coverage. In 2024, insurers paid out $1.20 in claims and expenses for every $1 collected in premiums, a gap IBC said is financially untenable and already forcing some insurers to limit new business.
According to IBC, insured losses from the July 13 storm reached $92 million, with 65% of claims related to vehicle damage. Over the past five years, Alberta has seen $6 billion in insured hail losses, compared with more than $11 billion over the past two decades.
The premium cap, now in place for three years, is the longest such measure in Canadian history. Without reform, IBC warned that the province’s Care-First initiatives could falter, leaving consumers with fewer coverage options and rising frustration.
At a national level, the bureau continues to press for a coordinated disaster-prevention strategy, including restricting development in high-risk areas and creating a federal agency to lead emergency preparedness efforts.
