Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

hatrack

(59,436 posts)
Fri Jun 20, 2014, 08:50 AM Jun 2014

Insurance Firms Respond To 2013 Record Alberta Floods Even If Harper Doesn't - 20% Rate Hikes

EDIT

“Nobody is immune from floodwaters,” said Jeff Burke, chief executive officer of Western Financial Group, a property and casualty insurer headquartered in High River, Alta. Mr. Burke and his employees have been watching the weather with trepidation ahead of the anniversary. The company has yet to move back into its downtown office, which was badly damaged in the flood. “There’s a lot of talk going on about rates, but the rate increases and the changes in coverage we’ve seen are not only resulting from the flood, but also the more frequent and severe climate change that is reality now,” he said.

Flooding is Canada’s most common weather hazard, and last year’s floods in southern Alberta resulted in $1.72-billion in insurance claims paid, according to data collected by the Insurance Bureau of Canada.

Combined with the $943-million in payouts insurers paid to cover damages from the July flooding in Toronto last summer, the insurance industry sustained the highest level of losses from catastrophic events in Canadian history at about $3.4-billion.

Insurers responded by adjusting their property coverage. Intact Financial Corp., the country’s largest property and casualty insurer, raised rates by as much as 20 per cent, increased deductible amounts and provided financial incentives for customers willing to take preventative measures to limit possible damages. The company also capped the coverage it provides for sewer backup damages, and customers can now purchase different levels of coverage depending on their needs.

EDIT

http://www.theglobeandmail.com/report-on-business/floods-prompt-insurers-to-call-for-catastrophe-protections/article19253018/

Latest Discussions»Issue Forums»Environment & Energy»Insurance Firms Respond T...