Cars are partially submerged in flood waters in the Don Valley following heavy rain in Toronto on July 16, 2024. THE CANADIAN PRESS/Arlyn McAdorey
TORONTO – Morningstar DBRS says insurance claims caused by the Toronto flood earlier this week could be “significant but manageable” for insurers.
The credit rating agency says the insurance industry can expect insured losses of around $1 billion from the heavy rains on July 16 that led to flooded highways and basements.
The agency says the insured losses are large for a single weather event, but they’re entirely manageable for the insurance industry.
While the single event won’t disrupt the industry, insurers have been facing upward pressure on claims including more than $3 billion in claims in both of the past two years.
To help with all the expected claims from the flood, Ontario’s insurance regulator says it has implemented temporary measures that should speed up processing.
The Financial Services Regulatory Authority of Ontario says under the short-term measures, firms can use claims adjusters with licences outside of Ontario and insurers in the province can use the services of employees of affiliated insurers.
This report by The Canadian Press was first published July 19, 2024.
