HALIFAX,
NS, July 25, 2024 /CNW/ - A new report from
Insurance Bureau of Canada (IBC)
reveals that one year after consecutive devastating wildfires and
flooding in Nova Scotia, the total
insured losses now stand at $490
million, according to estimates from Catastrophe Indices and
Quantification Inc. (CatIQ).
CatIQ noted that more than 88% of insurance claims related to
the Tantallon wildfire as well as
90% of the claims from the July 2023
atmospheric river flooding have been resolved.
In addition to this new insured loss data, IBC's report,
One-Year Update Following
2023 Nova Scotia Wildfires and
Flooding, provides unique insights into the factors
impacting the claims response as well as recommendations on how
governments, regulators and the property and casualty (P&C)
insurance industry can work together to improve the claims and
recovery process.
Specifically, the report notes that a scarcity of skilled
labour, shortage of building materials and a lack of adjuster
capacity were significant hurdles in the claims process.
Stakeholder feedback suggested the need to improve information flow
as crucial to successful disaster management and to enhance
response efficiency and effectiveness.
"The purpose of this report is to identify lessons learned –
including opportunities for improvement – to help inform the
industry's response to future catastrophic loss events, not only in
Nova Scotia, but across
Canada," said Amanda Dean, Vice-President, Ontario and Atlantic, IBC. "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 back-to-back disasters in Nova
Scotia illuminated the challenges of managing two large
claims events in quick succession and tested the resilience and
adaptability of insurers, adjusters, restoration companies and
emergency services. The report details measures that insurers have
taken to improve claims handling over the past year.
"We now live in a world in which large-loss insurance events
should be expected almost annually," added Dean. "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."
The report includes candid feedback from a variety of
stakeholders, as well as a focus on how improved communication and
information flow are crucial to successful disaster management and
enhanced response efficiency and effectiveness. The report
reinforces the insurance industry's call for implementing a
National Flood Insurance Program, for development of a National
Recovery Strategy and for all governments to collaborate with the
private sector to meet the targets of Canada's National Adaptation Strategy. The
Nova Scotia floods and wildfires
illustrated that we are not ready as a country to defend against
severe weather escalating due to climate change.
About Insurance Bureau of Canada
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry
association representing Canada's
private home, auto and business insurers. Its member companies make
up the vast majority of Canada's
highly competitive property and casualty (P&C) insurance
market.
As the leading advocate for Canada's private P&C insurers, IBC
collaborates with governments, regulators and stakeholders to
support a competitive environment for the P&C insurance
industry to continue to help protect Canadians from the risks of
today and tomorrow.
IBC believes that Canadians value and deserve a responsive and
resilient private P&C insurance industry that provides
insurance solutions to both individuals and businesses.
For media releases, IN Focus articles, or to book an interview
with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X
and Instagram, and like us on Facebook. If you have a question
about home, auto or business insurance, contact IBC's Consumer
Information Centre at 1-844-2ask-IBC. We're here to help.
SOURCE Insurance Bureau of Canada