Many Albertans know first-hand the importance of insurance in their time of need. Over the past decade, catastrophic events have resulted in $14.3 billion in insurance claims in the province. That’s 44 per cent of the $32.8 billion in severe weather claims made in the entire country over the same period. Natural disasters have been larger and occurred more often in Alberta than anywhere else in the country, and they are costing all of us more.
This year alone, insured losses from the Jasper wildfire and the Calgary hailstorm are just under $4 billion. Albertans have never needed a strong, supportive and stable insurance industry more than they do today.
A recent opinion column in the Calgary Herald included a suggestion that Canadians are bailing out insurance companies. Not only is this grossly inaccurate, it completely overlooks the vital role insurers are playing in helping Albertans recover and rebuild from the sheer magnitude of catastrophic weather events in this province.
The author of the opinion piece, a lawyer who specializes in disaster-related insurance claims, suggests that insurers “will use the principle of barring double recovery to reduce payouts by any amounts received from governments or non-profit organizations. In essence, taxpayer dollars and generous donations end up subsidizing insurance companies instead of going directly to those who need help the most.”
This is false. It also casts a shadow over the amazing work non-government agencies do to assist in post-disaster recovery. The truth is any funds raised and dispersed by government, non-government or charity organizations such as the Red Cross to those affected by disasters do not affect the claims payouts those same residents receive through their insurance policy.
Standard home and tenant insurance policies include coverage for additional living expenses. This includes the cost of alternate accommodation and living expenses for people whose homes have become unlivable after an insured loss. When an evacuation order is issued in a community, immediate financial assistance from their insurance policy is available for expenses, even if their home is undamaged. These funds are often deposited directly into bank accounts, so residents can immediately pay for a hotel, meals and other expenses. In the case of Jasper, insurance representatives proactively reached out to their evacuated policyholders to check in, make sure they were OK, and made arrangements to get them funds they needed as quickly as possible.
At a time when Albertans are relying on insurance more than ever, it’s important that lawyers working on disaster-related insurance claims are providing accurate information to those who have been affected by a traumatic event.
The 17,000 professionals who work in Alberta’s property and casualty insurance industry are proud to stand by their customers in times of need. Alberta’s insurers have been on the ground assisting customers with needed repairs and financial support, and working to process more than 135,000 claims from the wildfire and hailstorm.
In Jasper, insurers were in the community the day residents were allowed to re-enter. Insurance Bureau of Canada deployed its Community Assistance Mobile Pavilion (CAMP) program, alongside booths staffed by insurance representatives from more than a dozen insurers. The industry met with thousands of residents, and many insurers provided additional financial assistance to affected residents on the spot.
Insurers also funded the collection and disposal of thousands of refrigerators and freezers that had been without power for weeks. An army of adjusters were in the community from morning to night, providing residents with hope and a path forward amid tragedy.
While rebuilding will take time, the insurance industry will continue to be there to support affected communities every step of the way, as we have for decades.
Rob de Pruis is national director of consumer and industry relations, Insurance Bureau of Canada.