The ice storm that froze Central Canada into a standstill this Christmas weekend is already over, but Canada property insurers are bracing themselves for another shock: millions of dollars in property claims suffered by Canadian residents who had suffered emotionally and physically during the ordeal.
In a report from The Globe and Mail, insurer Intact Financial Corp CEO Chrarles Brindamour hinted that this trend could last, given the damages caused by global warming and other factors that have been disrupting once stable weather patterns. He said, “As severe weather events become more extreme and frequent, we will continue to pursue our efforts to ensure that the protection we offer reflects our country’s new climate reality…”
Tree limbs that have broken off from the main trunk and power disruptions are the main damages reported by property owners.
While figures of claims that will be paid are not yet available, industry players are advocating other options to lessen risks by empowering other stakeholders to carry the burden. For example, catastrophe bonds allow their buyers who take on high risks during natural disasters to reap huge rewards during times when rates are at their lowest.
