16 July 2018 13:30
While only two quarters have been accounted for, the cost of disasters for the first half of 2018 is close to equalling the total of these costs for 2017 at Intact Insurance, according to data recorded by the Log of the insurance.
In effect, the costs of claims related to catastrophes amounted to 272 million dollars ($M) for the first two quarters of 2018, when they totalled $ 313 M$ for the year 2017 full.
While the periods of the most expensive in 2014 were the first and third quarters, this trend has migrated in 2016 to the second and third quarters, and continued in 2017. For the same year, the losses in the first quarter jumped after a lull of two years.
Contacted for clarification on the causes of the significant increase in the costs of disasters and the predictions for the rest of the year, Intact has not responded to the requests of the Journal of insurance. It was also not possible to know if the losses include those of OneBeacon, following the acquisition of the insurer u.s. specialty by Intact last year.
The disaster well-known every year
For the second quarter of 2018, Intact stressed by way of a press release that the loss of$ 142 Million, which were attributable to damage caused by ice, rain and wind during three storms in the centre of the country in April and early may. The first quarter of the year has been marked by extreme weather conditions.
The costs related to the disasters in the second quarter of 2017 reached$ 105 Million due to heavy rainfall, which led to the spring floods in Quebec and Ontario and the storms of wind. The wintry conditions are also in question for the cost of$ 88 Million related to catastrophes in the first quarter of 2017.
The lights of Fort McMurray in 2016, have led to the loss of $ 3.8 billion and more than 60,000 claims, reports the consulting firm J. D. Power in the results of a survey. Moreover, approximately 900 claims would still not been resolved, adds the firm.
For 2015, the insurer has not issued any press release to justify the costs of catastrophe losses.
The third quarter of 2014 was marked by a hailstorm important in Alberta, which will raise the cost of the catastrophe losses at$ 124 Million. The hail storm accounted for about 70 % of the total operating costs.