The catastrophic floods that inundated the Canadian province of Alberta in June may result in future rating actions for Canadian insurers, rating firm A.M. Best Co. Inc. said in a report Monday.
While early estimates put the economic losses at $4.8 billion, insured losses are likely to be significantly less due to the relative scarcity of property coverage for flooding in Canada, A.M. Best said in the report, “Canada Insurers Well Positioned to Cope As Alberta Flood Losses Near Record Levels”
Nonetheless, the floods likely will rank among largest catastrophe losses in Canada’s history, the Oldwick, N.J.-based ratings firm said. “In historical terms, only a handful of catastrophe losses in Canada match or exceed the expected insurance payout from the Alberta floods,” the briefing sates.
A.M. Best said the insured losses from this event likely will be driven by commercial lines accounts.
“Commercial insurers may face business interruption claims from enterprises that carry this coverage,” the report states. “The amount of commercial flood coverage available also will be influenced largely by the percentage of accounts that purchased this optional coverage.”