One Year Later: Calgary's Historic Hailstorm Underscores Urgent Need for Government Action

Insurers call for government action to improve community resilience and fix unsustainable auto insurance market

CALGARY, AB, Aug. 5, 2025 /CNW/ - One year ago, a devastating hailstorm swept through Calgary, causing well over $3 billion in insured damage and becoming the second-costliest natural disaster in Canadian history. As the community marks the anniversary of this unprecedented event, Insurance Bureau of Canada (IBC) is commending the resilience of affected residents and urging provincial and municipal governments to strengthen community protection.

"The August 2024 hailstorm was a traumatic event for tens of thousands of residents, with hail, strong winds and heavy rain causing severe damage to homes and vehicles," said Aaron Sutherland, Vice-President, Pacific and Western, IBC. "Calgarians have shown tremendous resiliency over the past year and insurers have worked tirelessly to help them recover. The extent of repeated hail damage in the city should be a clear wake-up call to strengthen our resilience and adapt more effectively to our new weather reality."

Parts of Calgary sit within Canada's "Hail Alley," a region long known for frequent and damaging hailstorms — events that are getting worse every year. Alberta has experienced at least one major hailstorm every year for the past two decades, resulting in more than $10 billion in insured damage. The past five years alone have accounted for $5.5 billion of that total.

Less than a month ago, on July 13, the city was hit again by an intense hailstorm that has been declared a catastrophic event with damage expected to exceed $30 million. These events are not isolated incidents — they reflect of a clear and troubling pattern that demands action through public policy. Insurers are calling on governments at all levels to:

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

"Alberta is Canada's hotspot for catastrophic weather events. The province has seen more damage and a higher number of associated insurance claims than any other province in Canada," said Sutherland. "Over the past decade, Alberta has accounted for nearly half of all insured severe weather losses in Canada, placing pressure on insurance premiums that will continue to grow unless governments take action to better protect communities and our property."

IBC continues to urge governments to invest in making our communities more resilient against hail and other forms of severe weather.

Effects of severe weather on an already strained auto insurance market

More than half of the claims from last August's hailstorm – about 70,000 – were for vehicles, with estimated damage of roughly $1 billion. This underscores the growing pressure that severe weather is placing on Alberta's already strained auto insurance system.

As severe weather and other pressures climb, the cost of providing auto insurance continues to grow, yet for the past three years, Alberta has frozen or capped auto insurance rates 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, insurers have been 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 placed 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."

Resiliency at a national level

Governments across Canada have a critical role to play in better protecting Canadians from natural disasters. This includes:

• Halting the construction of unprotected homes and businesses in high-risk flood and wildfire zones;
• Investing in vulnerable communities to ensure they are FireSmart and better protected against flooding;
• Helping homeowners understand the specific risks they face in their area; and
• Subsidizing home retrofits to help reduce exposure to 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 event. Every other G7 country has an agency operating in this capacity – it's time for Canada to follow suit and take on a proactive approach to emergency management.

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]