Intact Financial Corp. estimates its catastrophe losses for the second quarter were around $421 million on a pre-tax basis.
The property and casualty insurer says in a news release the loss amounted to $1.79 per share after tax.
Intact says nearly half of the $252 million losses from Canada were attributable to wildfires, with the biggest financial impact coming from Atlantic Canada.
Intact says other notable losses included an ice storm and a flood in Quebec.
CEO Charles Brindamour says in a news release that Intact's teams are working to get customers back on track amid a "very active season for catastrophes."
He says this season is a reminder of the growing impact of climate change on forest fires and severe weather events.
This report by The Canadian Press was first published July 10, 2023.
Companies in this story: (TSX:IFC)
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We should be paying attention
We should be paying attention to these reports. What if insurance companies decide to stop insuring homes and businesses due to Climate Change impacts?
They have. The very large
They have. The very large insurance company State Farm recently decided to stop insuring homes in California.
Indeed. In fact, insurance
Indeed. In fact, insurance underwriters provide the most sober antidote to climate denial, doubt and delay. They have done the math.
Even before this summer's
Even before this summer's losses our insurance company launched a thorough review of our property with a view to its "risk factors". We haven't yet heard the results but we are sure that we will be dinged through premium rises to recover the profits for insurers and investors. So much for sharing the risk. Insurance is just as much of a predatory corporation where everyone but the executives, board and investors pays to keep the profits flowing.
The insurance sector is keen
The insurance sector is keen to change Canadian urban planning bylaws and building codes to account for forest fire risk.
The residents of Kelowna, BC, were hit very hard by the Okanagan Mountain fire of 2003 which saw entire subdivisions incinerated as fire jumped from forest to houses, driven by a huge wind created by the fire itself. The Fort McMurray fire was worse.
New Codes will protect residents through forest-residential firebreaks, non-combustible exterior materials, sprinkler systems, strategically placed hydrants and so on.
This is not "predatory" industry in action; it is just one part of the necessary climate adaptation we need.
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