Revealed – Insured losses from Nova Scotia disasters

Revealed – Insured losses from Nova Scotia disasters | Insurance Business Canada

Catastrophe & Flood

Revealed – Insured losses from Nova Scotia disasters

Last year’s wildfires and flooding had a significant impact

Catastrophe & Flood

By
Terry Gangcuangco

The Insurance Bureau of Canada (IBC) has released new Catastrophe Indices and Quantification (CatIQ) estimates of the insured losses from last year’s wildfires and flooding in Nova Scotia.

After a year, the approximation currently stands at $490 million. It was noted that over 88% of the insurance claims linked to the Tantallon wildfire and 90% of those from the July 2023 atmospheric river flooding have been settled.

The report, “Insurance Claims Update for 2023 Nova Scotia Wildfires and Flooding”, also delved into the challenges influencing the claims process and offers recommendations for government, regulators, and the property and casualty insurance industry to enhance claims resolution and post-disaster recovery.

The report identified significant obstacles in the claims response, including a shortage of skilled labour, building materials, and adjuster capacity. Feedback from stakeholders emphasized the importance of improving information flow to manage disasters effectively and boost response efficiency.

“Insurers want to support their customers and resolve claims as quickly as possible, and this means being transparent about how they can improve their response to better support impacted consumers. I believe this report is an important step.”

The IBC pointed out that the successive disasters in Nova Scotia underscored the difficulties in handling two major claims events within a short period, challenging the resilience of insurers, adjusters, restoration companies, and emergency services. The report outlines steps taken by insurers over the past year to improve claims processing.

Dean added: “We now live in a world in which large-loss insurance events should be expected almost annually. One year after the challenging and historic 2023 wildfires and flooding, I am extremely proud to see such a large volume of claims have been resolved, and the industry is committed to working with the remaining consumers to ensure every single claim is closed as soon as possible.”

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