Cost of July Calgary hailstorm almost double initial estimates

Total insured damage rises to over $6 billion in last five years

EDMONTON, AB, Sept. 12, 2025  /CNW/ – Insured damage from a hailstorm that swept through Calgary on July 13, 2025, has almost doubled initial estimates, according to new data from Catastrophe Indices and Quantification Inc. (CatIQ).

Original estimates pegged insured damage at $92 million, however, that total increased to $164 million – a 78% increase – with commercial losses increasing significantly in the latest estimate. Damage to vehicles represented more than half of all claims resulting from the storm.

“It’s been another catastrophic year for hailstorms in Alberta,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). “The July 13 Calgary hailstorm storm caused significant damage to vehicles, homes and businesses. Alberta has now experienced at least one major hailstorm every year for the past two decades – including last year’s record $3.2 billion hailstorm that hit Calgary. This has resulted in more than $10 billion in insured damage. The past five years alone damage from hailstorms has accounted for $6 billion of that total.”

On August 20, another major hailstorm hit Brooks Alberta, causing significant damage. An initial estimate of the cost of that event will be available in the coming weeks. Sutherland noted that claims from the damage of both these storms will take time to resolve, but that insures will support their customers every step of the way.

“There will be a high demand for contractors to fix siding and roofs, and a high demand for replacement vehicles and auto body repairs. This will add additional costs pressures on Alberta’s challenging insurance market, but rest assured our industry will be there to help Albertans recover as quickly as possible,” said Sutherland.

For years, insurers have been calling on all orders of government to better protect Canadians from natural disasters. In Alberta, that must include efforts to:

• Revive Calgary’s Resilient Roofing Rebate Program, which provided homeowners with financial assistance to retrofit their homes to protect them from hail damage
• Mandate the use of hail-resistant roofing and siding for all new construction in high-risk areas
• Improve hail notification services so that residents are better able to prepare and move vehicles out of harm’s way when a storm is coming.

Effects of severe weather on an already strained auto insurance market

A significant portion of the claims from July’s hailstorm were for vehicle damages. This underscores the growing pressure that severe weather is placing on Alberta’s already strained auto insurance system.

As severe weather and other pressures on the insurance system climb, the cost of providing auto insurance continues to grow. Yet for the past three years, the Alberta government has frozen or capped auto insurance premiums below the cost of providing coverage – the longest period of government interference in auto insurance in Canadian history.

Auto insurance premiums in Alberta are now far below the cost of providing auto insurance coverage, with auto insurers paying out $1.20 in claims and expenses for every $1 they earned in premiums in 2024. This is not sustainable and has forced several insurers to leave the province leaving many drivers facing challenges securing the coverage they need.

Unless rates are permitted to reflect the actual cost of coverage and Alberta’s auto insurance market is returned to health, the success of the government’s Care-First reforms will be in jeopardy.

“Consumers are feeling the impact of an auto insurance system is crisis. The cost of insurance is reflecting increased claims pressure even under the rate cap, and some consumers are having challenges securing coverage,” added Sutherland. “The government must remove the rate cap and ensure the Care-First reforms are implemented effectively – especially by reining in out of control legal costs. IBC continues to work with the government to get the details right. Without meaningful change, consumers will continue to face fewer insurance coverage options and growing frustration.”

The amount of insured damage is an estimate provided by CatIQ (www.CatIQ.com) under licence to IBC.

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.

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SOURCE Insurance Bureau of Canada