I'm usually in the "hate insurance companies" camp, but the numbers highlighted in
this CBC article sure paint an alarming picture.
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It found that four of these postal-code regions in Calgary — concentrated in the city's northeast — accounted for $39 million in premiums paid to insurers last year for comprehensive coverage (which includes hail damage) versus $420 million in claims paid out by insurers.
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Quote:
Total payouts per policy increased 74 per cent from 2020 (which also happened to see a major hailstorm strike northeast Calgary) to $1,707 last year.
That pushed Alberta insurers' loss ratio to 97 per cent, meaning for each dollar in premium earned, they paid out 97 cents in claims alone.
Insurers also have additional costs for staffing, commissions and other expenses, which typically amount to about 27 cents per dollar collected in premiums, meaning the industry took significant losses in 2024.
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I mean, that's just ####ty business that's not sustainable, so there's really only one possible outcome...