Insurance industry losses from the severe hailstorm that struck the Calgary area of Canada on August 5th 2024 is estimated to have reached CAD $3.25 billion, according to CatIQ, Canada’s insured loss and exposure indices provider.
This marks CatIQ’s fourth loss estim
ate from the event, and compares to its third loss estimate of $2.9 billion, which was issued 90 days after the event.We also covered CatIQ’s first loss estimate from the hailstorm in September 2024, where losses had surpassed $2.8 billion, making it the second-largest insurance industry loss event in the country’s history.
CatIQ confirmed that its latest loss estimate covers property (both commercial and residential) and vehicle (motor) claims including additional loss adjustment expenses.
“Unstable atmospheric conditions on 5 August 2024 saw thunderstorms develop along the southern Alberta foothills and drift eastward with the prevailing winds. Several of these discrete storm cells produced very large hail, up to the size of baseballs in some cases. One such storm cell moved across northern Calgary and neighbouring Strathmore, causing significant damage to homes and businesses. Hailstones punched holes in vinyl siding on homes, broke windows, and severely damaged roofs, including that of the Calgary International Airport,” CatIQ commented.
Adding: “Calgary has experienced a number of severe storms featuring extensive hail damage in recent years, with especially severe events in both 2020 and 2021 which together generated nearly CAD 2,000 million in insured losses. Of note is the fact that, while all three damaging storm cells impacted primarily residential areas, they each traversed different parts of the city. Damage in 2020 occurred mainly in the northeast, the 2021 storm affected primarily the southern tier, and the 2024 storm impacted the northern part of the city.”
It’s also worth highlighting, that in their $306 million reported catastrophe losses for August 2024, US primary insurer Allstate revealed that $75 million, or approximately 25% was related to the Calgary hailstorm.
Moreover, CatIQ has confirmed that a fifth update of the market loss from the hailstorm will be made available on August 5th 2025, twelve months after the event start date.
Laura Twidle, President and CEO of CatIQ, commented, “While the storm itself was not unusually severe for the region, the extent of the damage and the scale of the industry loss total reflect how the distance of a few kilometres in the track can result in tremendous loss differences when it comes to severe convective storm. There was nothing apparent about the storm from a meteorological standpoint to suggest it would result in one of the costliest events in Canadian history.”
She continued: “The insurance industry experienced a record loss year in Canada in 2024 and, while the majority of those losses stemmed from four events in July and August, of the year’s twelve total events, one quarter involved hail damage – an important reminder of the industry’s exposure to this peril. In the past five years, CatIQ has declared 30 catastrophes relating to hail with losses exceeding CAD 30 million, accounting together for more than CAD 8,000 million in insured losses for the industry.”
