Latest hailstorm in Calgary causes $92 million in insured damage

With over $6 billion in damages in the past five years, IBC says time has come for a serious conversation about repeated hail damage

EDMONTON, AB, Aug. 14, 2025 /CNW/ - The hailstorm that swept through Calgary on July 13 has resulted in close to $92 million in insured damages according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ). Damage to vehicles represented 65% of all claims resulting from the storm.

"Insured damage from hailstorms in Alberta over the past five years now stands at $6 billion," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). "Continued rebuilding on this scale is unsustainable and will put pressure on premiums until more is done to build resilience that prevents hail damage in the first place. We know what's required – better building codes, financial support for retrofits, and enhanced risk mapping and warning systems. It's time for a national conversation on how we can make these changes a reality to better protect Canada's communities moving forward."

Many areas of Calgary sit within Canada's "Hail Alley," a region long known for frequent and damaging hailstorms. Last week, CatIQ released its one-year update on the damage caused by the August 5, 2024, Calgary hailstorm that caused over $3.2 billion in insured losses. That storm was the costliest hailstorm, and second costliest natural disaster, in Canadian history.

Including last month's hailstorm, Alberta has experienced at least one major hailstorm every year for the past two decades, resulting in more than $11 billion in insured damage. The past five years alone have accounted for $6 billion of that total.

"These hailstorms are not isolated, one-off incidents – they reflect a clear and troubling pattern that demands action through public policy," said Sutherland. "It's far past the time to have a serious conversation about the extent of repeated hail damage, specifically in Calgary, and the urgent need to consider resilience measures and adapt more effectively to our new weather reality."

For years, insurers have been calling on all  orders of government to better protect Canadians from natural disasters. In Calgary, 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.

Resilience at a national level

Governments across Canada have a critical role to play in better protecting people from disaster. This includes:

• Halting the construction of homes and businesses in high-risk flood and wildfire zones
• Investing in communities that are at high risk of experiencing extreme weather events to ensure they are FireSmart and better protected against flooding
• Helping homeowners understand the specific risks they face in their area
• Subsidizing home retrofits to help reduce damage from floods and wildfires.

Canada also needs a federal coordinating agency to lead emergency preparedness and recovery efforts, ensuring communities are not left to develop their own response plans from scratch after every catastrophic weather event. Every other G7 country has an agency operating in this capacity – it's time for Canada to follow suit and take a proactive approach to emergency management.

Effects of severe weather on an already strained auto insurance market

More than half of the claims from July's hailstorm – about 65% – were for vehicles. 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. With premiums no longer reflecting the cost of providing auto insurance coverage, Alberta auto insurers paid out $1.20 in claims and expenses for every $1 they earned in premiums in 2024. This is not sustainable. As Alberta auto insurance grows increasingly financially untenable, some insurers are being forced to restrict the sale of coverage, 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.

"Alberta's auto insurance system is in crisis," said Sutherland. "The government must remove the rate cap and ensure the Care-First reforms are implemented effectively – especially by reining in legal costs, as promised. IBC continues to work with the government to get the details right. Without meaningful change, consumers will 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.

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

Media Contact: Brett Weltman, Manager, Media Relations, IBC, [email protected]